AmInvestment starts coverage on Apex, fair value RM3.82 : vi

AmInvestment starts coverage on Apex, fair value RM3.82


KUALA LUMPUR (Feb 4): AmInvestment Bank Research has initiated coverage of Apex Healthcare Bhd at RM3.35 with a "buy" recommendation and fair value (FV) of RM3.82.
In a note today, the research house said its FV for Apex is based on a price-earnings (P/E) of 26 times earnings per share (EPS) forecast for the financial year ending Dec 31, 2022 (FY22F).
It said the P/E of 26 times is slightly higher than the regional pharmaceutical industry’s average P/E of 24.4 times for FY22F.
AmInvestment said Apex is a pharmaceutical company with strong growth prospects in the orthopaedics segment.
It said although earnings contribution from this segment is still small at less than 10%, there is potential for growth.

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