25 August 2018
Adding on to Singapore Medical Group (S$0.46)
Singapore Medical Group (SMG SP) - S$0.46
We re-interate our buy call for SMG below
https://sgstocksandshares.blogspot.com/2018/07/singapore-medicalgroup-smg-our-view.html
We had previously stated that we will adopt a dollar cost averaging for this, as we believe in the long term fundamentals of the group, but acknowledge that sentiments and trading momentum has not been in the group's favour then.
Yesterday (24 Aug), SMG saw a sudden spike in volume along with share price increase, which we are not sure why. But we still like the stock for its compelling valuations, at S$0.46, the stock is trading at 15-16x FY19PE which is still at a discount to the historical medical sector range of 18-28x, and remains one of the cheapest among its healthcare peers- with earnings likely to continue to grow given management's growth mindset.
We will recommend to add another time on the dollar cost strategy we mention with a medium to long term investment horizon.
