Singapore O&G: CIMB has an unrated note. The company specializes in women’s healthcare with focus on obstetrics and gynaecology. It is another new player that plans to grow earnings via acquiring clinics, to which CIMB thinks is a rational strategy given their commoditized offerings.
It also has ASP upside as the group’s pricing is currently below median private prices.
Aside O&G business, management is also looking into moving into complementary specialist services like infertility and in vitro fertilizetion services. Another area, paediatrics, is also a natural fit, where the group can drive existing patient flow.
The Group does not have a fixed dividend policy, but targets a 90% payout ratio.
No comments:
Post a Comment