Saturday, 17 November 2012

Hartalega leads healthcare on revisions

 Publish date: Fri, 16 Nov 17:43 
Hartalega Holdings Bhd leads on analyst revisions among eight companies in Malaysia's healthcare sector tracked by at least three analysts, data from Thomson Reuters StarMine shows.

The glove manufacturer has an Analyst Revision Model (ARM) score of 98, the highest in the sector. This score has increased 40 points over the past 30 days.

It has high Smartholdings and Earnings Quality scores of 94 and 80 respectively. The former suggests a potential increase in institutional ownership while the latter implies good earnings sustainability over the next 12 months.

Hartalega's forward 12-month EV/EBITDA and P/CF ratios beat industry averages by 2 per cent and 9 per cent respectively. Its quarterly net income grew 28 per cent to RM59 million between September 2011 and 2012 while its quarterly free cash flow rose 27 per cent to RM42 million during the same period.

Seven of 13 analysts tracking the stock have raised EPS estimates on the firm for 2013 by an average of 3.3 per cent since Nov. 7. Eight of the 13 have also increased EPS estimates for 2014 by an average of 5.1 per cent during the same period.

Of the 12 analysts rating the stock, seven give it a "strong buy" or "buy", four have a "hold", while one recommends a "sell" rating.

Hartalega currently trades at an all-time high of RM5, around 86 per cent of its intrinsic value of RM5.79. The stock price has risen nearly 80 per cent over the past 12 months, while the broader index gained over 10 per cent during the same period, as of Thursday's close.

On the other end of the spectrum, Adventa Bhd lags the sector with an ARM score of 22. - Reuters

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