IHH Healthcare - Unmerited favour

Headline numbers were strong though seem unmerited, being distorted by non-recurring items that bumped up performance. We can get fussy very easily here, but we think IHH’s graceful recovery in key markets indicates the depth and strength of its operational capacity. IHH posted a set of better-than-expected results. 4Q12 and FY12 core EPS numbers comprise 25% and 117% of our forecasts respectively. We have fine-tuned our FY13-14 EPS, while introducing FY15 estimates. We retain our Outperform rating, and SOTP target price. Catalysts expected from a ramp-up of Novena Hospital's and revenue intensity in all its three markets.