Stock Name: KPJ
Company Name: KPJ HEALTHCARE BHD
KUALA LUMPUR: MIDF Research is positive on KPJ Healthcare
Bhd's sale and purchase agreement with Al-Aqra Healthcare Real Estate Investment Trust to dispose two pieces of land in Johor Baru for RM3.59 million.
The agreement was signed by KPJ Healthcare's wholly-owned subsidiary, Puteri Specialist Hospital (Johor) Sdn Bhd.
The research house said the agreement would pave the way for Puteri Specialist Hospital's expansion in consistent with KPJ Healthcare's asset light strategy.
"Based on its proven track record, we're confident the company's management will be able to sustain KPJ Healthcare's growth momentum, maintaining its top line growth rate and preserving its profitability.
"KPJ Healthcare is expected to gain RM1.53 million from the disposal, resulting in 0.27 sen improvement in earnings per share for the 2012 revenue," it said in a research note.
MIDF Research said KPJ Healthcare's share price saw strong positive movements over the last few months, which they believe was part of the positive spillover effects from IHH Healthcare's dual listing recently.
However, due to KPJ Healthcare's growth potential, the research house believes there was still ample upside for the stock in the long run.
The research firm maintained "buy" recommendation for KPJ Healthcare, with RM6.98 unchanged target price. -- BERNAMA
Company Name: KPJ HEALTHCARE BHD
| Research House: MIDF | Price Call: BUY | Target Price: 6.98 |
KUALA LUMPUR: MIDF Research is positive on KPJ Healthcare
Bhd's sale and purchase agreement with Al-Aqra Healthcare Real Estate Investment Trust to dispose two pieces of land in Johor Baru for RM3.59 million.
The agreement was signed by KPJ Healthcare's wholly-owned subsidiary, Puteri Specialist Hospital (Johor) Sdn Bhd.
The research house said the agreement would pave the way for Puteri Specialist Hospital's expansion in consistent with KPJ Healthcare's asset light strategy.
"Based on its proven track record, we're confident the company's management will be able to sustain KPJ Healthcare's growth momentum, maintaining its top line growth rate and preserving its profitability.
"KPJ Healthcare is expected to gain RM1.53 million from the disposal, resulting in 0.27 sen improvement in earnings per share for the 2012 revenue," it said in a research note.
MIDF Research said KPJ Healthcare's share price saw strong positive movements over the last few months, which they believe was part of the positive spillover effects from IHH Healthcare's dual listing recently.
However, due to KPJ Healthcare's growth potential, the research house believes there was still ample upside for the stock in the long run.
The research firm maintained "buy" recommendation for KPJ Healthcare, with RM6.98 unchanged target price. -- BERNAMA
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