HMI

[winston]

HMI gaining a steady pulse in the medical tourism sector

By Michelle Zhu

SINGAPORE (Sept 15): KGI Fraser is initiating coverage on private healthcare operator Health Management International (HMI) with a “buy” call at a target price of 60 cents.

Aside from a healthcare training institute based in Singapore, HMI owns and operates two tertiary hospitals in Malaysia with a 61% and 49% respective stake in Regency Specialist Hospital (RSH) in Johor and Mahkota Medical Centre (MMC) in Malacca.

In a Wednesday report, analyst Joel Ng says he expects RSH to be the group’s main growth driver over the next 2-3 years after doubling its existing bed capacity by FY19, due to its proximity to Johor’s industrial and residential areas, as well as the group’s plans to grow its medical tourism segment.

He also believes the hospital’s 19.8% EBITDA margin, compared to MMC’s 27.5%, means group EBITDA margins have upside to increase.

“As developing countries in SEA struggle with a relatively underdeveloped public healthcare system, private healthcare providers such as HMI are well positioned to meet the growing healthcare demand,” says Ng, noting MMC’s current estimated 10% share of Malaysia’s medical tourist market.

Noting that healthcare costs in Malaysia can amount to almost 50% cheaper than in Singapore, Ng is confident that HMI makes for an attractive destination for medical tourists.

Indonesians are a particular key driver as they contribute to 60% of total medical tourism spending in Malaysia to represent the majority of the nation’s medical tourists. The analyst expects this consumer group to continue doing so in the next 3-5 years as their affluence grows.

“Malaysia’s appeal is also driven by [Malaysia and Indonesia’s] close geographical proximity, cultural similarities and quality of healthcare services,” he adds.

Shares of HMI closed 1.9% higher at 54 cents.

Source: The Edge

http://smr.theedgemarkets.com/article/h ... e-87358173

[behappyalways]

health-management-international-reports-35-rise-fy17-earnings-after-consolidation-two-hospitals
https://www.theedgesingapore.com/health ... -hospitals

[behappyalways]

health-management-says-1q-earnings-more-double-45-mil-consolidation-and-strong-ops-performance
https://www.theedgesingapore.com/health ... erformance

[behappyalways]

Health Management International swings back to profitability with 3Q earnings of $5.4 mil
https://www.theedgesingapore.com/health ... ngs-54-mil

[behappyalways]

Health Management International posts 43% growth in 4Q earnings to $5.1 mil
https://www.theedgesingapore.com/health ... ngs-51-mil

[behappyalways]

Near-term growth may be uninspiring for Health Management International but long-term growth is on track
https://www.theedgesingapore.com/near-t ... owth-track

[behappyalways]

Health Management International posts 15% drop in 3Q earnings to $4.4 mil on higher costs
https://www.theedgesingapore.com/health ... gher-costs

[behappyalways]

HMI surges 9% on 73-cent privatisation offer; analysts recommend 'accept'
https://www.theedgesingapore.com/capita ... cept-offer

[behappyalways]

HMI 4Q earnings fall 11% to $4.5 mil on higher costs from new centre
https://www.theedgesingapore.com/capita ... new-centre