Brokers' take

Singapore healthcare DBS Group Research, July 4

HEALTHCARE expenditure is to triple by 2030. With ageing demographics, we project total healthcare expenditure to triple by 2030, rising to S$44 billion from S$17 billion in 2013 at 5.9 per cent compound annual growth rate (CAGR). Personal healthcare expenditure is projected to rise to S$28 billion from S$11 billion in 2013 at 5.7 per cent CAGR. In the long term, the public sector is to bear bulk of demand; private hospitals will have available headroom. Sector valuations are at premium. We upgrade IHH to "buy", (IHH MK; target price: RM7.60), being the key proxy to healthcare services counter in this region. We initiate coverage on Singapore O&G (SOG SP; buy, target price: S$1.05) for its specialised focus on women's health, high growth and reasonable yield. We believe the opening of its Gleneagles HK hospital will provide another earnings boost to the group over the medium term. We like ParkwayLife Reit for its defensive and resilient model (PReit SP; buy, target price: S$2.65).

Ezion Holdings | Hold Target price: S$0.50 July 4 close: S$0.465 OCBC Investment Research, July 4