IHH

IHH: CIMB reiterates Outperform with TP $1.53. Says IHH ability to make profits in desperate times cannot be ignored, when growth is hard to come by. Notes, as winter months approach Turkey in 4Q12, patient admissions and revenue are expected to see seasonal strength. Adds, the commencement of operations at its Ankara Hospital late last mth should also lift bed capacity. Meanwhile, Acibadem is going to repay US$257m or 55% of its USD borrowings and also other short term loans, resulting in interest saving of RM 11m. Believes there is no shortage of catalysts for the group, as revenue intensity is increasing in Spore and Msia, as a result of more complex cases and stretched public systems, along with price increases to compensate for cost inflation. Sees possible bump up from any success in tendering for the building of new private hospitals in HK, with announcements, if any, to come in late Dec ’12 or early 1Q13.