I remember when IHH was about to be listed, I had already made up my mind that I would apply for its IPO, failing which I would still purchase it on the market. In fact one of my best friends advised me to ensure I wouldn't miss this stock. She is one of the country's heads of major hospitals who was offered the pink form ( apply and you would sure get) How lucky could one be!
Well, I managed to get 75% of my applications at an IPO price of 2.80 per share and proceeded to buy more after waiting for about a week and the price had never gone down following its opening price! And I thought Westports would follow the same trend but I was dead wrong. Anyway, IHH has gradually uptrended right up to 4.16 and had a jolt late December 2013 following reports of the political turmoil with high inflation in Turkey and the decline of its currency. IHH has stakes in Turkish hospitals (the group’s newly opened Acibadem Bodrum Hospital and Acibadem Ankara Hospital)
I am not perturbed as when you are looking for growth and long term prospects, you would see this kind of glitches as an opportunity to buy additional shares due to its lower price. The stock has since remained volatile and its closing price last Friday 14 March was 3.69 ( target price is 3.60)
According to Alliance Research,the company's 4QFY13 is within expectation.The group has proposed a first and final single tier cash dividend of 2 sen for FY13. Management has also announced its newly formulated dividend policy of paying minimum 20% of PATMI ( profits after tax and minority interests) , excluding exceptional items. A low rate but the unrealised capital appreciation has been more than 30% as of last week. Under normal circumstances, a fully established healthcare business with good governance would generally generate profit allowing it to distribute dividend to its shareholders on a regular basis.
I will stick with this company for a fair bit longer while hoping that things will improve in Turkey. Its operations (Gleneagles Hospitals) in Malaysia and Singapore are on track and it is building another 500-bed hospital in Hong Kong that is scheduled for operation in early 2017. The one in Kota Kinabalu is being completed by 2015. I am actually tempted to buy more IHH shares at the current price and keep them.
Well, I managed to get 75% of my applications at an IPO price of 2.80 per share and proceeded to buy more after waiting for about a week and the price had never gone down following its opening price! And I thought Westports would follow the same trend but I was dead wrong. Anyway, IHH has gradually uptrended right up to 4.16 and had a jolt late December 2013 following reports of the political turmoil with high inflation in Turkey and the decline of its currency. IHH has stakes in Turkish hospitals (the group’s newly opened Acibadem Bodrum Hospital and Acibadem Ankara Hospital)
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| IHH showing a decline in its share price due to anxiety on political upheaval, high inflation and weak Lira in Turkey. (Source: Bursa Malaysia) |
According to Alliance Research,the company's 4QFY13 is within expectation.The group has proposed a first and final single tier cash dividend of 2 sen for FY13. Management has also announced its newly formulated dividend policy of paying minimum 20% of PATMI ( profits after tax and minority interests) , excluding exceptional items. A low rate but the unrealised capital appreciation has been more than 30% as of last week. Under normal circumstances, a fully established healthcare business with good governance would generally generate profit allowing it to distribute dividend to its shareholders on a regular basis.
I will stick with this company for a fair bit longer while hoping that things will improve in Turkey. Its operations (Gleneagles Hospitals) in Malaysia and Singapore are on track and it is building another 500-bed hospital in Hong Kong that is scheduled for operation in early 2017. The one in Kota Kinabalu is being completed by 2015. I am actually tempted to buy more IHH shares at the current price and keep them.
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