IHH Healthcare - Optimistic outlook ahead

2Q14 and 1H14 results above 
IHH’s 2Q14 and 1H14 core EPS beat expectations, forming 27% and 52% of our previous FY14 forecast respectively. The beat came through organic growth as patient admissions and revenue intensity through new disciplines and ramp-up of operations from various start-up hospitals kicked in. Currency translation had a minimal impact on this set of numbers as the strengthening Singapore Dollar offset the impact of the weakening Turkish Lira after the reported numbers were converted into Malaysian Ringgit. EBITDA excluding contributions from PLife REIT grew 16% yoy to RM435m. As a result, core PATMI jumped 21% yoy to RM179m. 

Monitoring Turkish Lira situation 
Pertaining to Acibadem, management said that it will monitor its liquidity position to hedge its cashflows by conserving hard currency receipts from medical travellers to service the debts and interest payments of its non-Turkish Lira denominated loans. Almost all of IHH’s FX losses are translational and unrealised. 

Reiterate Add 
IHH can now better mitigate the effects of higher staff costs and other inflationary pressures through price adjustments, while it extracts greater operating leverage on the back of higher inpatient admissions from its new and existing hospitals. The bulk of the capex programme from 2Q14 to FY16 would be funded using operating cashflows, although bank facilities will be used for the remaining 60% capex for Gleneagles HK (c.RM1bn). Net gearing is healthy at 0.1x, and the management has continued to guide for an upbeat outlook and willingness to drive greater dividend payments. Reiterate Add.

Meet the Cast of 'Cafe. Waiting. Love' <等一个人咖啡>

The romance-comedy, Cafe. Waiting. Love. is produced by the same team behind ‘You Are the Apple of My Eye’. In the director’s seat is Chiang Chin-lin, who was also the associate director for ‘You Are the Apple of My Eye’, as well as producer Angie Chai, known for producing hit TV show Meteor Garden. 

The movie stars Megan Lai, Hong Kong diva Vivian Chow 周慧敏 and fresh faces Vivian Sung and Bruce.

Cafe. Waiting. Love Star Appearance 
Date: 24 August 2014, Sunday
Time: 4.30pm
Venue: Shaw Theatres Lido, Shaw House Level 5
Attendees:

• Megan Lai 赖雅妍
• Vivian Sung 宋芸桦
• Bruce 布鲁斯
• Director Chiang Chin Lin 江金霖