Another takeover bid in Singapore’s healthcare sector highlights its attractiveness, says OCBC analyst Andy Wong; says after Parkway Holdings (P27.SG) announced proposal to be delisted after acquisition by Khazanah, “Thomson Medical Centre (5FV.SG) could follow suit after prominent investor Peter Lim’s general offer to acquire its shares at $1.75 a piece;” says shareholders will likely accept offer as values TMC at 33.5X P/E vs 15X historical average. 

Says “this is a testament of the high quality of healthcare providers here and has generated renewed hype in the healthcare sector,” with spillover effects seen in Raffles Medical (R01.SG) shares +1.8% at $2.29 (P/E of 26.4X) after announcement.

 

Keeps RMG at Hold with $2.35 fair value, as valuations already factor in strong fundamentals. But has Biosensors (B20.SG) at Buy, $1.30 fair value; likes stent-maker for cutting-edge technology, strategy on innovative new products. Biosensors +0.9% at $1.17.