IHH

IHH: Deutsche introduces IHH, Maxis and SP Setia in its top 5 Msian picks, replacing UEM Land, Gamuda and CIMB after the latter’s strong outperformance. The house keeps Tenaga and Maybank in the recommended portfolio. Deutsche notes, IHH ranks among the largest private healthcare companies globally. It is positioned in the higher-growth healthcare markets of Asia and CEEMENA and strong capacity expansion should drive robust 2-year (FY13-15E) adjusted EBITDA growth of 32%. Believes secular drivers such as: 1) growth in private healthcare expenditure resulting from rising affluence; 2) an ageing population supporting growth in inpatient admissions; 3) shortfall in bed supply; and 4) continued growth of medical tourism in IHH's home markets (Malaysia, Singapore and Turkey) should underpin robust medium- to long term growth. Rates at Buy with TP RM4.50 (S$1.88).