IHH Healthcare Expected to Take Minimal Hit from Tokyo Court Ruling

Dow Jones
Yesterday

0120 GMT - IHH Healthcare is likely to face minimal operational and financial impact from an unfavorable Tokyo court ruling for its unit Northern TK Venture, says Citi analyst Megat Fais in a note. The unit was ordered to bear litigation costs after the court dismissed its claims against Daiichi Sankyo. NTK filed the lawsuit in October 2023 alleging that it suffered damages, including suspension of a tender offer due to the interference of Daiichi Sankyo. Legal expenses, even of several million ringgit, would be small relative to IHH's more than 2 billion ringgit profit base, Fais says. Investors may remain focused on IHH's volume growth, margins, capacity expansion and earnings prospects across core markets, he adds. Citi has a buy rating and target price of 10.40 ringgit on IHH. Shares are unchanged at 7.89 ringgit.

 

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