“We remain positive on SMG’s ability to attract senior specialists, after its first major acquisition of Astra in Feb 2017,” says Maybank in a Friday research report, adding that the latest acquisition will give SMG a specialisation that complements its fast-growing obstetrics & gynaecology (O&G) practice, which has eight doctors.
SINGAPORE (April 21): Maybank Kim Eng is maintaining its “buy” on Singapore Medical Group with a higher target price of 78 cents on the acquisition of two paediatric clinics in Toa Payoh and Bishan for $25.3 million.
The valuation of the two clinics is 11x P/E with a five-year profit guarantee of $2.3 million p.a. They are expected to provide synergies and cross-selling opportunities for its women’s health division, which has eight specialists.
