IHH Healthcare

IHH Healthcare: Released 3Q13 results which offered no surprises, despite seasonal effects. The good news is the growth story at its new hospitals, while the bad news is confirmation of house view that rate charges at Singapore’s hospitals have peaked. Its valuation remains the only ugly facet of this story. 3Q13 and 9M13 core earnings were in line, accounting for 21% and 78% respectively of the house FY13 numbers. Make no changes to forecasts and SOTP TP stays intact. Overall, like the IHH franchise, but struggle to find any near-term catalysts, as the house expect better earnings only in FY15-16, and current valuations is decidedly unexciting. Maintain Neutral with $1.72 TP.