UBS: Maintains a "buy" rating on HYGEIA HEALTH (06078) with a target price of 20 Hong Kong dollars.

UBS released a research report stating that they have resumed coverage of HYGEIA HEALTH (06078) and maintained a "Buy" rating with a new target price of 20 Hong Kong dollars. The bank believes that the market is overlooking the long-term opportunities brought about by the market consolidation of HYGEIA HEALTH, hence the current undervaluation of the stock. UBS expects HYGEIA HEALTH's adjusted earnings to grow at a compound annual rate of 12% from 2023 to 2026. Additionally, they are optimistic about the group's prospects due to its leading operational efficiency, business strategy, and strong performance in hospital expansion and mergers. The bank has lowered their earnings forecast for the group by 25% to 33% for the years 2024 to 2026 to reflect slowing expansion and recent reimbursement pressures. They have also reduced their mid-term cash flow growth rate forecast for the group from 11% to 6.3% to reflect expectations of slower growth due to anticipated long-term healthcare payment reforms.