IHH healthcare

IHH healthcare: CIMB initiates coverage with Outperform Call and $1.53 TP. House believe that believe IHH’s extensive footprint in a defensive sector is one of the best business models around. It possesses steady-growth profile, driven by unquenchable demands for better healthcare needs. This is a direct play on the rising global healthcare costs. Note IHH’s ability to capture the huge demand for medical travel is a big plus, especially when its key home markets are able to act as regional hubs for medical travel. Demographic changes like ageing populations are leading to increased healthcare consumption. Similarly, higher expectation on healthcare standard is leading to increase in healthcare consumption. Mgt has experience extracting synergies from the integration of Pantai with Parkway. House believes such experience, allied with IHH’s growing scale and market leadership, will produce opportunities to raise service quality, and wring further cost synergies. In addition, IHH’s sponsorship of the Parkway Life REIT via a substantial stake provides opportunities not readily available to other healthcare players in the world. Further asset recycling opportunities could emerge among its Malaysian assets in due course, with freed capital being redeployed to growth frontiers.