[%wBHz%] 
Research by Kenanga
Outperform– TP RM7.73

" Acquiring Hospital in Penang ”

IHH is acquiring Island Hospital in Penang for RM3.923b cash. We estimate that the forward valuation is at 19.2x EV/EBITDA for a private hospital operator commanding an EBITDA margin of 30% with a profitable bottom line. While the deal is expected to be short- term earnings dilutive with some gestation, we like the deal due to a strategic fit to expand complementary services in Penang which is a location integral to its cluster strategy. Pending the completion of the deal expected by end-CY24, we maintain our forecasts, TP of RM7.73 and OUTPERFORM call.

Analyst:
Raymond Choo Ping Khoon 
[%EXoR%]

$KLSE-IHH 
Research by Kenanga
Outperform– TP RM7.73

" Acquiring Hospital in Penang ”

IHH is acquiring Island Hospital in Penang for RM3.923b cash. We estimate that the forward valuation is at 19.2x EV/EBITDA for a private hospital operator commanding an EBITDA margin of 30% with a profitable bottom line. While the deal is expected to be short- term earnings dilutive with some gestation, we like the deal due to a strategic fit to expand complementary services in Penang which is a location integral to its cluster strategy. Pending the completion of the deal expected by end-CY24, we maintain our forecasts, TP of RM7.73 and OUTPERFORM call.

Analyst:
Raymond Choo Ping Khoon 
pkchoo@kenanga.com.my