IHH

IHH: 3Q at the lower end of estimates although profits rose 26% y/y to RM146.9m as revenue and EBITDA climbed 7% and 8% respectively on growth in patient volume, average revenue per inpatient admission and contributions from two new hospitals. Most notably, Mount Elizabeth Novena Hospital revenue up 72% YoY and EBITDA more than doubled. Bottom line was also helped by reduced dependence on purchased and contracted services and lower finance costs, but management expects higher staff costs and other inflationary pressure. Management remains upbeat on the prospects as demand for quality healthcare in Asia continue to increase and the ramp up in utilization of its new hospitals in Malaysia and Singapore are mostly on target (but not for Turkey). BVPS at $2.27, trades at 0.83x P/BV. Post results, Maybanke-KE reiterates Hold and UBS reiterates Buy