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.

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