INITIAL PUBLIC OFFERING OF IHH HEALTHCARE BERHAD

LOCAL FUND MANAGERS Ng Hui Chen (Ciera) Then Kok Ling Kee Sek Chiew Chong Hoon Guan Banu Noraslamidatul Adawiyah bt Razak Nur Syahirah Husaini GM04728 GM04615 GM04725 GM04718 GM04756 GM04727 GM04674

 Financial
Key Financials
Current Ratio Debt Ratio Time interest earned Return on Equity

Performance
2010
0.5 79.8% 1.34 1.6%

2011
1.6 26.6% 3.63 1.4%

Industry Average
1 32.9% 302.9 14.3%

Comments
Better than peers. Relatively risky than peers Ability to pay the interest is weaker than peers. Worse than peers

Return on Asset
Growth of EPS Growth of EBITDA

0.5%
-90.6% 14.7%

0.7%
220% 15.9%

9.65%
8% 19%

Worse than peers.

Robust growth Show sign of increase from 2010 to 2011. However, relatively weaker than peers.

Revenue growth

903%

174%

NOPAT Growth

521%

-31%

 Country
Country Malaysia Economic
1) Healthcare sector contributes RM15 billon to the GNI of Malaysia. 2) Strong external liquidity & Robust balance of payment position. 1) Large and dynamic economy with trade linkages to the markets in Europe. 2) Substantial external vulnerabilities including large account deficit 1) Strong public sector financial position 2) Economic weakening due to the slow global economy activities.

Political
1) Relatively stable.

Social
1) High population growth 2) Growing populationo of elderly. 3) Rising affluence leading to demand for quality health care. 1) People above 65 age made up of 6.9% of the total population 2) Increasing trend lifestyle diseases due to rapid socio economic development 1) People above 65 age made up of 9% of the total population 2) Increasing trend for chronic lifestyle diseases.

Turkey

1) Political turbulence due to the secular religious tensions and regional and ethnic conflict

Singapore

1) Politically stable

Industry The healthcare sectors in IHHs key markets are supported by at least one of the following positive structural demand factors, namely: High population growth A growing proportion of the elderly rising affluence leading to demand for quality healthcare and the growing strain on public healthcare systems. Management Experienced management team.The Managing Director, Dr Lim Cheok Peng and The Executive Director, Dr Tan See Leng have more than 20 years experience in healthcare industry. Concern on the IPO 90.9% of the IPO proceeds are used to repay bank borrowings. Only 5.5% are used for working capital to spur the growth of company. Valuation Projected EPS for 2013- RM0.11 Target price per earnings ratio= 30x Target Price= RM3.30

 We

decide to invest RM200 million into IHH Holdings on short term basis. Rationale of our decision: Strong and promising future earnings growth Integrated healthcare provider with synergies in all the business Positive industry prospects Rapid development in business expansion The offer price is undervalued. Thus, there is potential upside in the stock price. Investment on short term basis as the dividend payment is uncertain