[%EJYp%] 
Research by CGS
ADD – TP RM7.88

" Acquisition of Island Hospital the right fit”

■ IHH’s proposed acquisition of Island Hospital (IHSB) for a total consideration of RM3.92bn translates into a 1H24 TTM EV/EBITDA (ex-land) of 23.3x.
■ We view the valuations as fair, given IHSB’s 1H24 EBITDA/PATMI growth of 46%/54% yoy; IHH expects acquisition to turn earnings accretive by FY26F.
■ We reiterate Add on IHH as we think the acquisition will support IHH’s ambitions to grow its northern Malaysia cluster as a medical tourism hub.
■ Our SOP-based TP remains unchanged at RM7.88, pending the finalisation of the funding structure for the acquisition.

Analyst:
TAY Wee Kuang
[%PPUN%]

$KLSE-IHH 
Research by CGS
ADD – TP RM7.88

" Acquisition of Island Hospital the right fit”

■ IHH’s proposed acquisition of Island Hospital (IHSB) for a total consideration of RM3.92bn translates into a 1H24 TTM EV/EBITDA (ex-land) of 23.3x.
■ We view the valuations as fair, given IHSB’s 1H24 EBITDA/PATMI growth of 46%/54% yoy; IHH expects acquisition to turn earnings accretive by FY26F.
■ We reiterate Add on IHH as we think the acquisition will support IHH’s ambitions to grow its northern Malaysia cluster as a medical tourism hub.
■ Our SOP-based TP remains unchanged at RM7.88, pending the finalisation of the funding structure for the acquisition.

Analyst:
TAY Wee Kuang
weekuang.tay@cgsi.com