1Q14 results in line. 1Q net profit ended at RM159.1m, up 25% from the same period last year. This accounts for 20% of our FY14F estimates as per last year. Revenue grew by 8.2% y-o-y to RM1.76bn and EBITDA closed at RM443.6m, up 12.7% y-o-y on the back of margin expansion particularly from improvements in Novena hospital. Excluding exceptional items (consisting largely of forex losses on net borrowings - 1Q14: RM28.6m vs 1Q13’s RM10.2m), net profit would have been RM172m, registering a 35% y-o-y increase.
Maintain HOLD, TP revised to S$1.49 (RM3.87). Our forecast is unchanged but our TP is revised marginally to S$1.53 (RM3.99), from S$1.49/RM3.87, after taking into account a higher value for its stake in PREIT and Apollo Hospitals, and forex movements. Maintain HOLD.