ISEC

ISEC: ISEC's slate has been wiped clean for a 2016 rebound, driven by organic growth, end of start-up losses and M&As.

The eye specialist has shut down its loss-making ISEC Novena, with the last of the costs captured in 4Q15, setting the stage for a profit rebound in FY16. Immediately, an absence of Novena operating losses will plough $2.6m back to its bottom line.

In addition, there will also be full-year contributions from newly-acquired SSEC in Melaka.

Maybank-KE believes that following SSEC’s acquisition, M&A pace should also pick up, with up to five deals in the works. The house believes these could double profits if closed.

The stock is the cheapest in Maybank-KE's healthcare universe at just 15x P/E. The house maintains Buy and TP of $0.40 based on 27x FY16 EPS, a 20% discount to peers on account of its smaller size.