IHH Healthcare - CGS-CIMB Research 2022-06-08: Positive On International Medical University (IMU) Sale

IHH Healthcare - Positive On International Medical University (IMU) Sale

  • IHH Healthcare (SGX:Q0F) has entered into a definitive agreement for the sale of its medical education arm International Medical University (IMU) for RM1,345m. The sale also includes a hospital under construction, which is designated to be a teaching hospital for IMU. The deal is valued at 16.6x of IMU’s FY21 EV/EBITDA, and is expected to complete in 1Q23F, subject to relevant regulatory approvals.
  • IHH Healthcare remains steadfast in executing its business strategy to grow its existing hospital clusters, with a greenfield hospital in Turkey slated to open in 2H22F, as well as ongoing due diligence to acquire business from Ramsay-Sime Darby that will both enhance IHH Healthcare’s Klang Valley cluster and expand into the Indonesian market.
  • We think that current valuations for IHH Healthcare remain attractive, and its SOP-based target price of RM8.12 implies a forward EV/EBITDA of 16.2x, which is lower than its 5-year historical average of 19.2x.
  • We like the deal as it allows IHH Healthcare to focus on investments in its core healthcare service businesses.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

TAY Wee Kuang CGS-CIMB Research | https://www.cgs-cimb.com 2022-06-08
SGX Stock Analyst Report ADD MAINTAIN ADD 2.530 SAME 2.530

Previous report by CGS-CIMB:
2022-05-27 IHH Healthcare - Confident Despite Oncoming Headwinds

Check out the most recent target prices at IHH Healthcare Target Prices. Listing of analyst research reports at IHH Healthcare Analyst Report.

Relevant links:
IHH Healthcare Share Price History,
IHH Healthcare Announcements,
IHH Healthcare Dividends & Corp Actions,
IHH Healthcare News Articles


SGX Stock / REIT Search