Research

Healthcare: Defensive With Better Outlook

market-avatar

Algo Research Team

Industry | Aug 28, 2023 | Views: 124

The content provided here is for informational purpose only. It is not an advise or recommendation. Please do your own research.
content-img

Key Summary:

  • Rising ISPA might increase patients traffic in 2H23
  • Defensive amid cyclical slowdown
  • Healthcare Omnibus Law & BPJS regulation are long-term catalysts

Since last year, we have been reiterating our conviction in the healthcare sector as a defensive play in 2023. Here are our previous research: (PRDA: Positive Sector Outlook and M&A Beneficiary) in Dec-22 and (Healthcare: Attractive & Defensive) in Mar-23, whereby SILO and PRDA as the top selections have outperformed the market with YTD returns at +57%/+13%, respectively vs. IHSG at +0.4%.


Our reasoning stem from the Healthcare Omnibus Law and BPJS regulation changes as a long-term growth driver and defensive amid cyclical slowdown. Replaces SILO (take profit) with MIKA given its lagging share price performance, valuation is still attractive at -1SD, good quality fundamental and most liquid for institutional. PRDA remains in the stock selection. Higher ISPA cases may provide short-term momentum in 2H23 for hospitals as patients traffic could increase correspondingly.

How was our research?

DISCLAIMER: Algo is an independent research platform and is not affiliated with any financial institution. We are not a licensed securities dealer, financial advisor, broker, or investment bank. The contents shared across our website, and social media platforms are intended for informational purposes only and reflect our views and opinions. It is not meant to be construed as financial advice and/or a recommendation to buy or sell an asset. Past performance does not guarantee future results. As a research platform, our contents are made to provide data-driven information and research-based articles, and should not be used as a basis for making any investment decisions. We strongly encourage you to conduct your own research and consult with a licensed financial advisor before making any investment decisions. Algo is not regulated by OJK (Otoritas Jasa Keuangan) and does not provide any investment services. We are not responsible for any financial decisions you make based on the information provided. All content is presented with the intent of informing only.