Growth expected to stay stable for IHH Healthcare

Singapore

DBS Group Research expects hospital operator IHH Healthcare to continue to post stable growth, fuelled by key markets Singapore and Malaysia, although growth in its Turkey operations could be partially impacted by the weaker Turkish lira.

"We expect growth to remain relatively robust and retain our projected earnings growth of 25 per cent/18 per cent/19 per cent for FY14/FY15/FY16 (respectively), driven by the continued ramp-up of new hospitals, coupled with revenue intensities and price increases," wrote DBS analyst Andy Sim in a report. Gleneagles HK Hospital is also on track for completion by end 2016, with the construction contract having been awarded for HK$2.48 billion (S$416.3 million), he noted.