Friday, August 17, 2012

KPJ Healthcare: Downgrade to Sell - Time for Profit-taking; Downgrade to Sell

  • Results in line, time to take profits. 2Q12 revenue of MYR529.3m (+12.4% YoY, +0.7% QoQ) and PATAMI of MYR34.8m (+15.4% YoY, +4.4% QoQ) were within our expectations with 1H12 revenue and PATAMI making up 50% and 45% of our FY12F forecasts respectively. The second-half would generally be stronger.
  • With the strong run-up in share price, valuations are looking rich with the stock now trading at 27x diluted FY12F PER. We believe it is time to take money off the table. Downgrade to SELL with a marginally raised TP of MYR5.84.
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Source: Maybank Research - 17 August 2012

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