BIMB SECURITIES RESEARCH
Tuesday, 24 July 2012
RM3.30Offer Price RM2.80
KLCI1,636.17ListingMAINSectorConsumerShariah CompliantYIssued Shares (m)8,057.1Market Capitalisation (RMm)22,589.8Estimated Free Float33%
Khazanah Nasional46.80%MBK Healthcare20.06%
Details of IPO (RMm)
Institution Placement 498.01
MITI Tranche 360.00Global Institute Tranche 138.01
Malaysia Public Offering
Bumiputera 80.57Non-Bumiputera 80.57Eligible Directors 4.50Eligible employees 22.59Business associates 20.27
Singapore Offering 140.64
Singapore public 52.00Singapore placement 36.00Eligible Directors 3.75Eligible employees 16.60Business associates 32.28
Cornerstone Offering 1,387.50TOTAL 2,234.65
Closing for Application12-Jul-2012Listing25-Jul-2012
Utilisation of Proceeds (RMm)Details of utilisation RMm
Repayment of bank4,662.76Working Capital and General279.64Estimated Listing Expenses 187.60
Total 5,130.00Thong Pak Leng
An Integrated Healthcare Provider
IHH Holdings provides a full spectrum of healthcare services, from primaryhealthcare clinics to secondary and tertiary hospitals.
It is one of the world’s
largest healthcare providers with an estimated market capitalisation of RM22.6bn. At the moment, IHH global healthcare network operates over 4,900licensed beds encompassing 30 hospitals. In addition, the group have morethan 3,300 new beds in the pipeline to be delivered through new hospitaldevelopments in Malaysia, Singapore, Turkey and other regional countries. Weare positive on the outlook of IHH given its nature of being in a recession proof industry and strong market positioning. We value IHH at RM3.30 based on 30xPER over FY13 EPS of 11sen. With potential upside of more than 17%, werecommend IHH a BUY.An integrated healthcare provider
. The business portfolio of IHH includeintegrated healthcare business, ancillary healthcare business, projectconsultation and education besides investing and hold equity interest in Plife
REIT which is one of the Asia’s largest healthcare real estate investment andApollo, one of the India’s largest private healthcare providers.
The maincomponent of IHH includes Parkway Pantai Ltd (PPL), Acibadem Holdings andIMU Health (IMU).
Strong team of medical specialists.
At present, IHH has about 3,260 specialistswhere about 1,200 are based in Singapore or about 90.0% of the total number of private specialists in Singapore whilst 760 are in Malaysia with the balance of 1,300 in Turkey.
Continue to grow.
Presently, IHH global healthcare network operates over 4,900licensed beds in 30 hospitals. In addition, the group have more than 3,300 newbeds in the pipeline to be delivered through new hospital developments inMalaysia, Singapore, Turkey and other regional countries.
Strong earnings growth ahead
. For FY12 and FY13 we expect IHH to register netearnings of RM763.3m and RM883.7m respectively representing growth of 478.1% and 15.8% respectively.
FY 31 Dec (RMm) 2009 2010 2011 2012E 2013E
Revenue 3,946.3 4,506.7 5,190.8 6,011.0 6,996.1EBITDA 774.6 888.8 1,029.7 1,424.6 1,647.2
Pretax profit 470.3 155.1 333.4 1,083.4 1,254.1
Tax(6.8) (76.4) (87.8) (227.5) (263.4)
MI(36.3) (37.3) (113.6) (92.6) (107.1)
Net Profit 427.2 41.5 132.0 763.3 883.7
Core Net profit(26.3)75.3(45.9)763.3 883.7
Core EPS (sen)(0.3)0.9(0.6)9.5 11.0
Core EPS growth (%) 0.0% -400.0% -166.7% -1683.3% 15.8%DPS (sen) n.a.
NTA/ share (RM) 0.27(0.64)0.59 0.69 0.81Net gearing (x) 0.0 1.9 0.1 net cash net cashPER (x)(933.3)311.1(466.7)29.5 25.5
Div. yield (%) n.a. n.a.
P/ NTA (x) 10.2(4.4)4.7 4.0 3.4