SINGAPORE (May 27): CIMB is maintaining its “add” rating on IHH Healthcare Bhd with a target price of RM7.46 ($2.52) on robust 1Q results, strong volume growth in Malaysia and Turkey as well as Singapore’s medical tourism showing signs of recovery.

“India is recovering nicely. Expansion plans are on schedule. Maintain Add,” says lead analyst Jonathan Seow in a Thursday report.

In 1Q16, IHH Healthcare posted robust organic growth of 16% for existing operations, even when revenue from new hospitals and ParkwayLife REIT were excluded.

Inpatient volumes for both Malaysia and Turkey showed strong growth, thanks to improved utilisation and gradual ramp-up of new hospitals.

Operations in Singapore continued to deliver strong revenue growth but were also lifted by a strong Singdollar. Quarterly topline growth of 21% was mostly driven by a 20.9% increase in volumes as average inpatient revenue came in nearly flat.

Meanwhile, losses in India narrowed to RM3 million despite the Chennai flood and CIMB expects India to turn EBITDA positive in FY16F.

As at 3.48pm, shares of IHH are down 1.33% at $2.22 in Singapore.