Business

Brokers' take

Compiled by Kenneth Lim

KEPPEL CORP | BUY

TARGET PRICE: $7.60
AUG 24 CLOSE: $6.36

DBS Group Research, Aug 24

Keppel has secured two LNG-fuelled containership contracts worth over US$400 million (approximately S$550 million) in total from Honolulu-based Pasha Hawaii.The vessels are expected to be delivered in Q1 2020 and Q3 2020.

The new win will lift Keppel's year-to-date wins to about $850 million or 57 per cent of our order assumption of $1.5 billion.

HEALTH MANAGEMENT INTERNATIONAL | BUY

TARGET PRICE: $0.80
AUG 24 CLOSE: $0.645

OCBC INVESTMENT RESEARCH, AUG 24

Health Management International (HMI) reported its Q4 FY17 results, with revenue up 5.2 per cent year-on-year to 111.7 million ringgit, leading to a net profit of 10.7 million ringgit, versus 4.9 million ringgit in Q4 FY16.

Keep in mind that this is the first quarter of a fully consolidated set of results, reflecting the acquisition of non-controlling interests in its two hospitals...

Looking ahead, FY18 earnings should offer further clarity to investors on earnings, given the consolidation of ownership in both hospitals and lesser one-off costs.

We believe our investment thesis remains intact, with the group on a healthy growth momentum, backed by a multi-strategy approach, expansion plans and a strong management team.

IHH HEALTHCARE | HOLD

TARGET PRICE: $1.73
AUG 24 CLOSE: $1.895

UOB KAY HIAN RESEARCH, AUG 24

H1 FY17 adjusted core earnings fell 32 per cent year-on-year, missing our and consensus estimates.

Pre-operating costs at new hospitals such as Gleneagles Hong Kong were the main drags, offsetting top-line growth (10 per cent year-on-year).

That said, existing core markets registered good operating performance with higher inpatient volume and revenue intensity.

Reduce 2017-19 earnings estimates by up to 30 per cent to build in cost pressure.

Maintain "hold" with a lower sum-of-the-parts target price of $1.73 (previously $1.80). Entry price: $1.50.

Disclaimer: All analyses, recommendations and other information herein are published for general information. Readers should not rely solely on the information published and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.