地點：Bugis+ Atrium, Level 2
|Charges peaking in S’pore |
3Q13’s core net profit was driven by growth at its new hospitals and savings in finance costs despite seasonal effects. The better numbers were offset by depreciation and finance costs relating to new hospitals that had to be recognised in the P&L after completion. The good news is that Acibadem Bodrum has achieved EBITDA breakeven.Last week, we mentioned that there was a bigger issue with peaking charges and revenue intensity in Singapore, rather than the decline in Indonesian patients. Indeed, Indonesian patient admissions jumped by 9% yoy in 3Q13, allaying fears of a weaker rupiah. The average revenue per inpatient in Singapore grew by only 1% from 2Q13, despite favouring S$-to-RM translation.
Translational FX issue
The balance sheet is still healthy given its savvy cashflow management and structured capex programme. Our main gripe is the uncertainties in FX translational differences in the income statement and balance sheet, which further blurred any meaningful comparisons across its markets.
Although IHH should continue to benefit from growing private healthcare consumption and revenue intensity in all its three markets, improving entry points and fundamentals for its regional peers may provide investors with better short- to mid-term returns. As such, we keep IHH at Neutral.
|A solid set of results, with earnings growth led by contributions from new stores and margin expansion. The decline in comparable store sales looks worrying but is largely due to temporary factors. 3Q13 core earnings is in line and forms 27% of our and consensus full-year estimates, while 9M13 forms 74%. We tweak our estimates as a result of housekeeping. There is no change to our target price, which is still based on 23x CY14 P/E (10% discount to Dairy Farm). Catalysts are to come from earnings delivery led by new stores and margin expansion. We maintain our Outperform rating.|
Core earnings 8% growth yoy were driven by contributions from new stores (up S$12.6m) and expanding margins. EBIT margins crossed the 7% mark for the first time since IPO, led by another quarter of high gross margins of 23.2% due to cost savings from Mandai Distribution Centre and tight cost control. However, full-year EBIT margin is likely to be a high 6% because of next quarter’s payout of year-end bonuses and the booking of S$0.9m of inventory writeoffs. We are not worried by the decline in mature store sales of S$4.5m as a large part is due to construction work at Bedok and The Verge stores. These stores contributed S$3.5m of the decline. This temporary inconvenience should be more than compensated by increased footfalls when construction of the multi-storey carpark and MRT are completed, respectively.
No new stores
Although no new stores have been announced so far this year, we think that the earnings contribution from the 11 new stores opened after the IPO has room to grow given that peak sales usually occur in the third year.
Share price has fallen 15% since its Jul high, and is undemanding at 19x CY14 P/E vs. the peer average of 22x. Valuations are further supported by a 4.8% CY14 dividend yield.
|Now that you know money is a great thing to have and a force for good, don't you want to be as wealthy as you possibly can to affect the world in better ways?|
I'm sure you do! The more you have, the more you can give and share. (Just look at Bill Gates!) But do we all have to be like Bill Gates and strive to be billionaires? No, we don't. I mean if you want to, sure go ahead! But if your goals and dreams are to simply do your best at your career and take care of the people around, that's just as commendable.So Then How Do You Build Wealth?
Most people think that to get rich, they need to earn a lot of money. So they look at sports stars, celebrities and high flyers as examples of successful, rich people.
But how many people get to be sports stars and celebrities? If that's your dream, then by all means, go for it! But most regular people are just that - they're regular, decent people making a regular paycheck.
What you may not know is that these "regular" people are your next-door millionaires! Did you know that if you invest just $10/day at 20% returns per annum, you'd have $4,254,773 in just 30 years?
You can get very rich just working a regular job, but investing wisely! And if you have a huge active income... well, you can grow your money even faster. But trust me, earning a huge paycheck doesn'tmean you're wealthy. If you make a million but you spend two every month, you're still broke. And even if you make all the money, don't you need a safe place where you can grow your money long-term? Yes, you do.
So yes, you need to know how to invest. Not only to build sustainable, long-term wealth but also because of this:
1) Working a job means you're trading time for money: if you want more money, you have to work more hours. But there's a limit to how many hours you can work a day.
2) Investing gives your passive income. Your money works for you 24/7 whether you are working, sleeping or relaxing on a holiday.
3) Inflation eats up the value of your money. If you do not invest, you become poorer over time.
4) Unless you want to work forever, you need your investments to fund your living expenses when you retire.
Investing allows you to build and safe-keep your wealth. (Yes, investing is very safe when you know what you're doing!).
|While slower leasing in China led to the earnings miss in 1Q14, GLP has seen a strong pick-up in the past six weeks. Looking past this, same-store rents in China remain on the rise with a potential recycling of assets in Japan in FY14. 1Q14 core earnings were below, forming 21% of our full-year estimate and 20% of consensus. We lower our FY14-15 core EPS by 3-9% due to slower leasing assumptions for China and lower operating profits in Brazil. Our RNAV-based target price dips to S$3.32 Maintain Outperform, with a stronger China take-up and accretion from asset recycling as catalysts.|
A slower quarter
1Q14 saw a blip in the take-up in China, with new leased area down 57% qoq to 0.2m sq m vs. strong development starts of 0.73m sq m due to a weaker take-up in China. That said, we believe that GLP is unlikely to maintain this current run rate for the rest of FY14. Management indicated that the leasing demand was noticeably stronger in the past six weeks, with c.0.1m sq m leased out in Jul. NAV for China rose by 30% yoy, but would have been stronger if not for some delays asset completions of due to certain reconfigurations made for its customers. Weaker operating profits in Brazil at the associate level rounded off the earnings miss.
Same-store NOI in China rose by 10.4% yoy (rents up 5% yoy), which drove a 40% yoy increase in China revenues. Occupancy in China remains at 90%. Its landbank in China grew by 0.56m sq m and it is on track to add over 2m sq m (19%) to its inventory in FY14. Its balance sheet, at a 9% net debt to asset ratio, remains very robust.
GLP booked a US$100m revaluation gain in Japan on a 13bp cap rate compression (5.2% currently). We believe that further accretion could come if more asset spin-offs into its GLP J-REIT in FY14. Where and what GLP re-invests in will be key for a share price re-rating.