In in initiation report on Monday, analyst Cheah Zhuo En says he expects a net profit margin reversal from FY18 losses to 10.8% in FY19E on the back of a full year’s contribution from OUE LH’s recent acquisitions of Bowspirit and First REIT.
SINGAPORE (Mar 11): Soochow CSSSD Capital Markets (SCCM) is starting coverage on OUE Lippo Healthcare (OUE LH) at “buy” with a target price of 8.8 cents, while forecasting a 25.2% earnings per share (EPS) CAGR from FY19-22E as the group enters a “durable earnings expansion phase”, in the research house’s words.
Based on the research house’s valuations, the stock currently trades at an attractive 1.1 times price-to-book versus the industry average of 3.8 times.
