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DBS maintains 'buy' on Econ Healthcare despite 'negative surprise' for 1H22 results

Atiqah Mokhtar
Atiqah Mokhtar11/23/2021 7:0 PM GMT+08  • 2 min read
DBS maintains 'buy' on Econ Healthcare despite 'negative surprise' for 1H22 results
DBS has kept its target price for Econ Healthcare unchanged at 40 cents.
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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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