[%Akvt%] 
Research by TA
HOLD – TP RM6.88

" Proposed Acquisition of Island Hospital”

Yesterday, the board of IHH proposed to buy Island Hospital for RM3.92bn, with the transaction expected to be completed by 4Q24. We consider the offer price as fair, as the acquisition is valued at an EV/EBITDA of 24.6x, which is in-line with previous hospital acquisitions in Malaysia, ranging from 20.1x to 31.3x. Overall, we are positive as the acquisition is expected to be EPS accretive from 2026. In addition, IHH Malaysia medical tourism revenue is expected to at least double, given Island Hospital status as the top medical tourism hospital in Malaysia. No change to our earnings estimates pending completion of the acquisition. Maintain Hold on IHH with an unchanged TP of RM6.88/share based on SOTP valuation.
  
Analyst:
Tan Kong Jin 
[%lKEa%]

$KLSE-IHH 
Research by TA
HOLD – TP RM6.88

" Proposed Acquisition of Island Hospital”

Yesterday, the board of IHH proposed to buy Island Hospital for RM3.92bn, with the transaction expected to be completed by 4Q24. We consider the offer price as fair, as the acquisition is valued at an EV/EBITDA of 24.6x, which is in-line with previous hospital acquisitions in Malaysia, ranging from 20.1x to 31.3x. Overall, we are positive as the acquisition is expected to be EPS accretive from 2026. In addition, IHH Malaysia medical tourism revenue is expected to at least double, given Island Hospital status as the top medical tourism hospital in Malaysia. No change to our earnings estimates pending completion of the acquisition. Maintain Hold on IHH with an unchanged TP of RM6.88/share based on SOTP valuation.
  
Analyst:
Tan Kong Jin 
kjtan@ta.com.my