IHH Healthcare

IHH Healthcare: Announced strong set of 2Q12 results, which was in-line. Earnings rose more than five-fold to RM403.54m ($162.1m) yoy. Rev at RM2.7b, +231% yoy. Strong results due to the recognition of profits from the sale of 216 medical suites at Mount Elizabeth Novena Specialist Centre, and the consolidation of Acidadem Holdings from Jan12. Normalised revenue, which excludes the sale of the medical suites, was RM1.5b, +82% yoy. Deutsche note that growth in inpatient admissions and revenue intensity due to price increases and case mix helped lift 1H12 EBITDA margin by 1.1ppt yoy to 21%. The outlook remains positive as mgmt accelerates the ramp up of Novena going into 2H12. Ratings as follow: Deutsche maintains Buy with Rm3.55 TP