KPJ Healthcare (5878.KU) to MYR3.92 from MYR3.15

KPJ Healthcare (5878.KU) to MYR3.92 from MYR3.15, maintains Buy call. Healthcare company's revenue, profit growth of about 20%/year over last five years set to be sustained as its adding at least two new hospitals to network each year, analyst Norfauzi Nasron says. Adds, target of MYR2 billion revenue by 2012 (MYR1.4 billion in FY09) "highly achievable"; raising EPS forecast for FY10 and FY11 by 24% warrants to exclude dilution impact from warrants, which now out-of-the-money and unlikely to be converted. "We reiterate our view that KPJ is an excellent choice for long-term and portfolio balancing supported by its steady dividend payout of around 50%, as well as its sizeable growth potential in a defensive sector," Norfauzi says. KPJ +0.3% at MYR2.89.

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