A Starbiz report today quoting sources said three parties - Faber Group's wholly-owned subsidiary Faber Mediserve SB, Pantai Medivest SB and Radicare (M) SB - which are vying for the Government’s hospital support services (HSS) concession, are likely to get their contracts renewed within the next month.
We view the news favorably as this indicates that negotiations are progressing well, with the final decision on track to be announced before the extended deadline of April next year. We reiterate our view that despite the delay, Faber would eventually get its concession renewed, going by its strong 15-year track record since the company’s concession started on 28 Oct 1996.
Maintain Trading Buy. We maintain our Trading Buy recommendation on Faber with an unchanged FV of RM2.24, based on SOP valuation. This valuation is premised on the assumption that that the concession will be renewed for another 10 years based on the same terms and conditions in the existing concession.
We view the news favorably as this indicates that negotiations are progressing well, with the final decision on track to be announced before the extended deadline of April next year. We reiterate our view that despite the delay, Faber would eventually get its concession renewed, going by its strong 15-year track record since the company’s concession started on 28 Oct 1996.
Maintain Trading Buy. We maintain our Trading Buy recommendation on Faber with an unchanged FV of RM2.24, based on SOP valuation. This valuation is premised on the assumption that that the concession will be renewed for another 10 years based on the same terms and conditions in the existing concession.
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