SINGAPORE: Shares of Thomson Medical Group jumped almost 40 per cent on Tuesday (Aug 26), lifted by news of an RM18 billion (US$4.3 billion) mega project in Malaysia’s Johor.
The Singapore-listed healthcare company’s shares opened at S$0.065, up from S$0.049 at the previous closing. It climbed to an intra-day high of S$0.068 in early trade.
The stock later pared gains to close at S$0.060.
Mr Eric Ong, an analyst at Maybank Securities, said Thomson Medical Group’s share price had exceeded the stockbroker’s previous target price of S$0.047.
“However, our forecasts and valuation do not include Thomson Medical Group’s projected gross development value of over RM18 billion for the whole mega project,” he said.
While the healthcare company’s shares have upside potential, this would be in the longer term as the project’s completion and its subsequent earnings contribution would probably take a few years, added Mr Ong.
Thomson Medical Group announced the launch of Johor Bay on Monday, stating that it would be one of the largest of its kind in Southeast Asia.
Located within the Johor-Singapore Special Economic Zone, it will include Thomson Hospital Iskandariah, specialist suites, aged care facilities and a life sciences tower for medical research.
Besides the medical facilities, the 10.52ha development will also have luxury residences, a five-star hotel, and commercial-lifestyle precincts catering to regional tourism and medical travellers.
It will be located 1.2km away from the upcoming RTS station at Bukit Chagar and minutes away from the Causeway and regional ferry terminals, said the group.
