Outlook remains positive. The upgrading and expansion plans for Mahkota Medical Centre and Regency Specialist Hospital are on track to meet the increasing medical demand in the region.
The S$11.0mn net proceeds from the Placement Shares to Heliconia Capital Management is earmarked for the Group’s business expansion and has not yet been utilised.
Maintain BUY with unchanged DCF-derived TP of S$0.83
We maintain our view that HMI will benefit from the socioeconomic tailwinds arising from (i) public and private initiatives to improve infrastructure and regional connectivity; (ii) increasing domestic insurance take-up rate; (iii) favourable demographics; and (iv) cost competitive pricing compared to regional peers.
The Group targets to reach 840 aggregate bed capacity – Mahkota (eventual capacity of 340 beds) and Regency (eventual capacity of 500 beds).