SINGAPORE (July 13): UOB Kay Hian has raised its target price for IHH Healthcare from $2.09 to $2.31 as the company is set to open three more hospital projects, but maintained a “hold” recommendation given the stock’s lofty valuations.

IHH had announced in June plans to develop the 450-bed multi-specialty ParkwayHealth Shanghai International Hospital with an expected opening in 2020. Developed by a 70% owned joint-venture company in partnership with Shanghai Hongxin Medical investment holding, the hospital is expected to offer a range of healthcare services, including cardiology, urology and general surgery.

UOB Kay Hian’s Thai Wei Ying believes the new hospital will target affluent local patients, expatriates and potentially, medical tourists. The hospital is also situated near transportation hubs such as Hongqiao airport and a high-speed railway station, which would facilitate high patient traffic. Thai also added that the group’s six existing medical centres in Shanghai could provide a strong customer base and referrals to the hospital.

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