Monday, July 4, 2016

Singapore O&G

Singapore O&G - DBSV initiates with Buy and TP $1.05​
- Expects 3 year earnings CAGR of 29% driven by inorganic growth.
- Diversified into higher-margin complementary services such as women's cancer treatment. Other potential services include paediatrics, IVF, and child care
- Organically, market share also expected to increase on recruitment of new doctors. Current market share in O&G at 6.7% (2015) from 2012's 4.3%.
- Low base indicates high potential for substantial growth
- Boasts high dividend payout policy of 90% translating into a yield of about 4-5%.
- Currently trades at 21x FY17F P/E, looks to be a steal compared to other healthcare peers.

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