Affin Investment Bank Research raised its target price for
hospital operator KPJ Healthcare Bhd to 6.55 ringgit
from 6.44 ringgit, saying the company was growing its medical
tourism segment and preparing to open two new hospitals.
"For exposure to the domestic defensive and growing
healthcare sector, we continue to like KPJ for its sound
fundamentals, prudent and organic expansion plans," Affin said
in a report on Friday. Affin maintained an 'add' rating on the
KPJ will soon be operating 23 hospitals in Malaysia, for
which it may need up to 1 billion ringgit to purchase assets.
The company is expected to raise funds through bank borrowings
or the issuance of bonds, said Affin. "The company's gearing
level remains low at 0.3 times, it still has room to gear up for
expansion," it added.
Shares of KPH were up 0.33 percent at 6.05 ringgit while the
benchmark index was 0.12 percent higher at 0930 am (0130
(Reporting by Al-Zaquan Amer Hamzah; Editing by Anupama