IHH Healthcare - CIMB Research 2015-11-27: 3Q seasonally weak; expect strong 4Q

IHH HEALTHCARE BERHAD Q0F.SI 

IHH Healthcare - 3Q seasonally weak; expect strong 4Q 

• 3Q15 core earnings were broadly in line; 9M15 formed 68% of our forecast (vs. 69% in FY14). 
• Core net profit growth (+16% yoy) was mostly driven by higher average inpatient revenue in Turkey, ramp-up at Novena Singapore and marginal growth in Malaysia. 
• 3Q15 EBITDA margins declined to 23.1% (2Q15: 26.1%, 3Q14: 23.9%) due to share-based expenses, new hospitals in M’sia, and bad debt provisions in Turkey. 
• 4Q is seasonally stronger (weather related and increased patient traffic come yearend). Maintain Add. 

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