It said in that the sector was also considered defensive due to its higher predictability factor and captive earnings streams.
“In the recently concluded second-quarter results season, both IHH Healthcare Bhd and KPJ Healthcare Bhd came in within expectations.”
Noting that stocks such as IHH and KPJ were trading at rich valuations, Kenanga Research said their growth trajectory were reflected in their current prices.
The research house rated the industry and both IHH and KPJ as “underperform” with target prices of RM4.20 and RM3.31, respectively.
IHH last traded at RM4.97 with a price to earnings ratio of 57.13 times while its close counterpart KPJ was quoted at RM3.94 with a price to earnings ratio of 26.44 times.
/theSTAR 08-10-2014
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