DBS Group Research has maintained its “buy” rating for Econ Healthcare (Asia) with an unchanged target price of 40 cents despite the company reporting a 30% y-o-y decline in operating profit for 1HFY2022 ended September.
Calling the results a “negative surprise”, analyst Paul Yong, along with the Singapore research team highlight that the company’s operating margins for 1HFY2022 were weaker than expected, primarily driven by a decline in occupancy rates in Econ Healthcare’s Malaysia nursing homes from 75.5% to 53.8%.
See: Broker's Digest: ST Engineering, Frencken, CDL, Econ Healthcare (Asia)
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