Healthcare sector in good shape going into 2017

SINGAPORE (Dec 23): The healthcare sector is expected to overcome near-term headwinds and enjoy healthy growth prospects from 2017, according to DBS Group Research.

The healthcare sector has performed strongly in 2016, rising 24% year-to-date compared to a 2.1% growth in the benchmark ST Index.

However, “earnings growth was weighed down by start-up costs and pre-operating costs of expansion plans, both in home markets and new markets,” says DBS lead analyst Rachel Tan. “We expect these expansion plans would begin to unfold in phases over the next three to five years, starting in 2017.”

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