Brokers' take

Health Management International | Buy (maintained) Feb 13 close: S$0.55 Target price: S$0.73 UOB Kay Hian Research, Feb 13

Core net profit of RM31.3 million (S$10.4 million) is in line with expectations, coming in at 51.6 per cent of our full-year estimate.

HMI recently acquired a stake in Plus Medical Holdings, a clinic group which operates 16 primary care clinics in Singapore. The clinic group is in its initial stages of growth and is poised to increase its network.

For Q2 FY19, revenue contribution from StarMed was still negligible. The group is continuing its efforts in marketing and awareness events as well as continuous recruitment of specialists. According to management, excluding the impact of gestation costs for StarMed, Q2 FY19 core net profit should have increased 15.5 per cent year-on-year. This suggests an impact of about…