Stock Name: KPJ
Company Name: KPJ HEALTHCARE BHD
Research House: MIDF
KUALA LUMPUR: KPJ HEALTHCARE BHD [] shares rose in early trade on Thursday, April 14 and were up 10 sen to RM4.21 at 9.40am with 469,300 shares traded.
MIDF Research upgraded the stock to a Trading Buy with a higher target price of RM4.60 from RM3.51 previously based on EPS12.
The research house in a note April 14 said it was raising its implied PER for KPJ to 18 times (from 14 times previously), which is at the high-end of its historical PER band, due to positive newsflow and valuation rerating.
'We expect valuation re-rating to outweigh the impact of earnings dilution on warrants conversion. About 23.6% of the total warrants 2010/15 issued have been exercised.
'We revised marginally our forecast due to some housekeeping activities.
Continuous expansion locally with one or two new hospitals'' each year as well as potential venture into countries such as Vietnam, Cambodia and Myanmar will support the company's future growth and enhance its brand name regionally, MIDF Research said.
It said KPJ's management expects a strong double digit revenue growth in FY11
Company Name: KPJ HEALTHCARE BHD
Research House: MIDF
KUALA LUMPUR: KPJ HEALTHCARE BHD [] shares rose in early trade on Thursday, April 14 and were up 10 sen to RM4.21 at 9.40am with 469,300 shares traded.
MIDF Research upgraded the stock to a Trading Buy with a higher target price of RM4.60 from RM3.51 previously based on EPS12.
The research house in a note April 14 said it was raising its implied PER for KPJ to 18 times (from 14 times previously), which is at the high-end of its historical PER band, due to positive newsflow and valuation rerating.
'We expect valuation re-rating to outweigh the impact of earnings dilution on warrants conversion. About 23.6% of the total warrants 2010/15 issued have been exercised.
'We revised marginally our forecast due to some housekeeping activities.
Continuous expansion locally with one or two new hospitals'' each year as well as potential venture into countries such as Vietnam, Cambodia and Myanmar will support the company's future growth and enhance its brand name regionally, MIDF Research said.
It said KPJ's management expects a strong double digit revenue growth in FY11
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