MIDCAP-Faber most attractive on valuations in Malaysia's healthcare sector

Faber Group looks the most attractive onvaluations among eight stocks in Malaysia's healthcare sectortracked by at least three analysts, data from Thomson ReutersStarMine shows.

The facilities management company has a Relative Valuation(RV) score of 96, the highest in the sector, and an aboveaverage Value-Momentum (Val-Mo) score of 80. The higher the RVscore the cheaper the stock compared to its peers.

Faber's Earnings Quality (EQ) score rose eight points to 98after the company announced its second-quarter earnings on Aug.30.

Its free cash flow (FCF) rose just under three times to 108million ringgit for the quarter ending June from a year earlier,while net income rose only 3 million ringgit to 20 millionringgit during the same period.

Of the four analysts tracking the stock, two rate it a 'buy'while one each gives it a 'sell' and 'strong sell' rating.

The stock currently trades at 58 percent of its intrinsicvalue of 2.18 ringgit. It is down just over 29 percent so farthis year, while the broader index is up nearly 8.5percent in the same period, as of Monday's close.


Faber said on Aug. 9 that its second-quarter net profitincreased 18.3 percent, or just over 3 million ringgit, to 19.5million ringgit. Its revenue increased nearly 17 percent to 218million ringgit during the same period.

StarMine's Relative Valuation model combines six differentratios that measure a company's valuation and then ranks itcompared with all other stocks in the same region.

StarMine's Val-Mo model provides a 1-100 percentile rankingof stocks and rates stocks based on a combination of two valueand momentum metrics.

The Earnings Quality model is a percentile (1-100) rankingof stocks based on sustainability of earnings, with 100representing the highest rank.

(Reporting By Reshma Apte; Editing by Jijo Jacob)