KPJ

KPJ

Postby winston » Fri Mar 16, 2018 8:43 am

not vested

Trading Buy: KPJ - 5878
(Last price: RM0.940, Potential upside +21.3%)


Company Profile

KPJ is Malaysia’s leading provider of private healthcare services. Its integrated network consists of over 26 specialist hospitals located throughout the nation.

With its expansion abroad, the Group currently has two hospitals in Indonesia, a sizable share in a hospital in Bangkok and a hospital in Bangladesh.


Trading Catalyst

• HLIB has a BUY rating with SOP TP of RM1.18, or 25.5% upside.

• KPJ offer investors exposure to Malaysia’s hospital play. Its niche lies in its network that feeds patient into its urban specialist. Going forward, we opine that growth will continue to be driven by higher contribution from newly opened hospitals and improvements in contribution coming from its more matured hospitals coupled with the booming medical tourism.

• We also view that the improving ringgit against USD bodes well for KPJ as it will reduce the volatility and the cost of medical consumables, which in turn will result in higher profitability

• Poised for a downtrend line breakout with the formations of Tweezers bottom and higher lows pattern, coupled with bottoming up technical oscillators.

Technical View
• Resistance: RM0.995 / RM1.07 / RM1.14
• Support: RM0.910 / RM0.870
• Cut loss: RM0.865

Key Financial Stats
• Trading at 20x FY19 P/E, 16.6% and 59% lower against its 10Y historical average of 24x and IHH’s 49x, respectively, and supported by strong EPS CAGR of 12% from FY17-19.17%.

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: KPJ

Postby winston » Mon Apr 22, 2019 9:23 am

not vested

KPJ Healthcare
MFRS 16 : Neither good nor bad?

We revise our FY19-21F net profit by -2% to -11% to reflect the capitalisation of operating leases from 1 Jan 2019 due to MFRS 16.

Despite the negative earnings revision for FY19F, we remain positive in the prospects of the group, driven by the expansion and ramp-up of its hospitals.

Maintain Add with an unchanged target price of RM1.28, based on 2020F P/E of 27.4x (its 5-year historical mean).

Out of the 26 hospitals under KPJ’s network, 17 hospitals, and several other healthcare-related properties are under the operating lease model.


Source: CIMB

https://brokingrfs.cimb.com/BarF3CTLTiE ... PovJg2.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am


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