IHH Healthcare - A Hidden Gem In SGX

🌟🌟🌟$IHH(Q0F.SI)$ IHH Healthcare is one of the world's largest private healthcare services providers.  With an integrated network spanning over 80 hospitals in 10 countries, it has a team of more than 70,000 staff to care for patients.  Its motto is "Care For Good". 

Through IHH's portfolio of trusted brands - Acibadem, Mount Elizabeth, Prince Court, Gleneagles, Fortis, Pantai, Parkway, Timberland Medical Centre, Twin Towers Medical Centre and IHH Laboratories, it offers patients comprehensive and personalised care ranging from primary care to ancillary services such as laboratory, diagnostics, imaging and rehabilitation.

IHH's key markets are in Malaysia, Singapore, Turkey, India, Greater China (including Hong Kong), Brunei, Bulgaria, North Macedonia and Netherlands.

In Singapore, IHH Healthcare operates 4 hospitals and over 30 primary and ambulatory care facilities.  These include the prestigious Mount Elizabeth Hospital, Gleneagles Hospital, Mount Elizabeth Novena Hospital and Parkway Hospital where more than 1500 accredited specialists provide quality care and effective multi displinary specialist care. 

IHH also operates the Parkway Shenton network of over 30 primary care clinics in Singapore, an ambulatory care centre under Parkway MediCentre, managed care and employee benefits company, iXchange plus a wide range of speciality and ancillary services such as Parkway Cancer Centre, Parkway Radiology, Parkway Rehab and Parkway Emergency Services.

IHH Healthcare is dual listed in Bursa Malaysia and Singapore. On August 29, IHH Healthcare has reported strong double digit growth in Q2 2024.  For the quarter, Revenue is up  30% to RM6. 1 billion, EBITDA has risen by 34% to RM 1.4 billion.  This was due to sustained patient volume growth and taking on more acute, complex cases across all markets.

Profit after tax and minority interest (PATMI) more than doubled on strong operational performance as well as positive impact from deferred tax credits.  Excluding exception items, PATMI grew by 39%.

IHH Healthcare is slated to open its first Transitional Care Facility called TCF@East located in Upper Changi Road by January 2025..  The 200 bed facility complements IHH Singapore's out of hospital strategy, extending the continuum of care available to patients. 

Fortis Memorial Research Institute in India becomes the South Asia's first to offer the groundbreaking Gamma Knife Esprit treatment for brain tumours. 

For the 1st  Half 2024, Revenue and EBITDA reported double digit growth on sustained improvement in patient volumes and increased revenue across all markets.  Excluding exceptional items, PATMI was 30% higher.   The lower PATMI was primarily due to the high base last year, which recorded 1 off gains of RM 862 million from the sale of International Medical University. 

IHH Healthcare's Balance Sheet remained strong.  Net cash generated from operating activities at RM 1.9 billion and overall cash balance at RM 1.5 billion. 

For the Group Outlook, IHH intends to expand bed capacity to 4000 new beds within the next 5 years.  It also wants to increase its patient's volume and grow its lab business as well as upgrade its facilities and improve performance and operations. 

Overall IHH Healthcare expects continued revenue growth fuelled by heathcare megatrends and focus on driving profitability and sustaining healthy ROE while maintaining prudent capital management. 

Performance wise, IHH has recently reached its 52 week high at SGD 1.97 per share, alerted by my Tiger App Market Monitor. 

IHH Healthcare pays dividends every 6 months.  The current dividend yield is 1.67%.  It goes ex dividend on September 27. 

IHH Healthcare has a Buy rating from financial analysts with Target price ranging from SGD 2.18 to SGD 2.27.

I have invested in IHH Healthcare since 2023 and I am happy with its excellent performance.  Healthcare is an essential service and will be resilient in all economic conditions. 

IHH is also the sponsor for 

$ParkwayLife Reit(C2PU.SI)$  which I have also invested.   I will do another post on Parkway Reit which has also recently reached a 52 week high. 

IHH Healthcare is in my opinion a hidden gem in the Singapore stock market as it is a great healthcare conglomerate with lots of exponential growth ahead.  At the last closing of just SGD 1.97, it is certainly undervalued for what it offers. 

Go Long Go Strong Go IHH Healthcare! 🚀🚀🚀🌛🌛🌛🌈🌈🌈💰💰💰

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