Healthway

Healthway: proposing to diversify business to include the development, invmt and mgt of real estate which comprise medical facilities in the region (ie Medical Development), via 25% owned JV with 4 members of mgt/ major shareholders. Geographic focus is on China, where Medical Development will include
i) hospitals and medical centres,
ii) retirement communities,
iii) medical and wellness resorts,...
iv) mixed developments comprising medical facilities with retail, office and commercial units, and hotel or service apartment. Projects to be funded through mix of equity and bank borrowings. Company may also provide medical, healthcare and related support services to the JV...

We think that plan is still in early stages, and it is premature to determine whether move is positive. Mgt needs to get sh/h approval, and execution risks remain. The recent purchase of shares by Peter Lim (now a significant sh/h) may be a catalyst for the stock in the short term.