Monday, August 23, 2010

Healthway

Healthway: DMG cuts target to $0.23 from $0.30 after slashing FY10 earnings est to $4.7m from $16m to reflect weak 2Q10 results (net profit down 97% to $121k), on higher-than-expected start-up costs and lower patient load factors.
Still, keeps Buy call as healthcare group actively expanding in China, with plans to operate 20 medical centers there by year end after recently securing contracts to manage 12.

Expects revenue to pick up strongly in FY11, with full-year contribution from its new medical centers in China.

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