Malaysia Healthcare Sector Likely Supported by Structural Demand

Dow Jones10:20

0220 GMT - Malaysian healthcare sector could remain supported by the rising prevalence of non-communicable diseases, an ageing population, and increasing health awareness, CIMB Securities analyst Chun Sung Oong says in a note. He pegs IHH Healthcare as his new top pick, citing its stronger earnings visibility. IHH's business is expected to benefit from patients shifting to private hospitals amid high occupancy at public hospitals. In India, Gleneagles India's profitability is expected to improve as it works more closely with Fortis Healthcare. The potential IPO of AsiaOne Healthcare could renew investor interest in Malaysia's healthcare sector, as the listing could support higher valuations, he adds. CIMB maintains an overweight rating on the Malaysian healthcare sector.

 

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