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Gregory Yap, regional sector head at Maybank Kim Eng Research, and John Cheong, analyst at Maybank Kim Eng Research, pick winners among health-care stocks listed here.迷利倉THE health-care sector - including wellness products and services companies - is truly a recession-proof industry.Even more pertinently, health-care costs are growing faster than gross domestic product (GDP). In the 34 countries that belong to the Organisation for Economic Cooperation and Development, the annual growth rate in health-care costs averaged 2 percentage points more than GDP between 1960 and 2006.This resilience has clearly shown up in the investment return leagues. The MSCI Asia ex-Japan Health Care Index has consistently outperformed the broader MSCI Asia ex-Japan Index in the past five years.Health-care companies will continue to demonstrate defensive earnings due to the strong recurring nature of their businesses and the structural drivers of demand that are in play. These structural factors include: growing and ageing populations; better income and the ability to pay for better care; an increase in expectations; and changes in lifestyles (for example, obesity) - all of which will lead to higher health-care consumption.Income investors looking for secure dividends can find options in the big, cash-rich pharmaceuticals industry, while growth investors will want to look at mid-sized health-care companies offering secure growth prospects.For the more adventurous, there are many biotech start-ups offering high-risk but high-reward plays.Valuation-wise, the majority of the health-care stocks under our coverage appear high when compared with non-health-care stocks.However, we think that this premium is justified by the growth potential and the low number (scarcity value) of these stocks.Here are some stocks under our coverage.Q&M Dental GroupRecommendation: BuyTarget price: 41 centsAs the largest dental clinic chain in Singapore, Q&M is the strongest beneficiary of a trend of more people being aware of the need for dental care, not just in Singapore, where it is best known, but also increasingly in Malaysia and China.Q&M has expanded into these countries via both acquisitions and organic expansion in the last few years.We expect next year to be the first year when it will enjoy record earnings growth as its organic expansion will start to bear fruit by then. Even without any acquisitions, we still expect 30 per cent growth in earnings next year. But a successful conclusion to two currently ongoing acquisitions in China could boost earnings even more significantly.Raffles Medical GroupRecommendation: BuyTarget price: $3.70Raffles Medical is the largest private medical group practice in Singapore, offering general medical care, specialist medical care, dental care and even traditional Chinese medicine. It serves more than one million customers and 6,500 corporate clients through 78 multidisciplinary clinics and a hospital in Singapore, as well as four medical centres in Hong Kong and Shanghai.Raffles Medical has generated resilient earnings growth in the past few yea迷你倉s due to its robust client base and diversified base of foreign patients.It now seeks major expansion for its local and overseas operations.In Singapore, it is in the midst of obtaining final regulatory approval to expand the capacity of its flagship Raffles Hospital by around 30 per cent and is actively looking for a location to set up a new medical centre. In China, it is in the negotiation phase of setting up more hospitals in Shenzhen and Shanghai.Osim InternationalRecommendation: BuyTarget price: $2.34Osim is a market-leading lifestyle and wellness company in Asia, with brands such as Osim (massage chairs), GNC (vitamins) and TWG (tea) under its umbrella of products and brands.With strong brand equity and full control of its supply chain, Osim is able to sustain strong margins and very healthy cash flows.The company is also in a healthy net cash position and remains committed to expanding through new outlets as well as further product innovation.We see its associate-turned-subsidiary, TWG Tea, increasing its contribution significantly as the company ramps up its store count and gets its products distributed through more channels.Sino Grandness Food Industry GroupRecommendation: BuyTarget price: 94 centsSino Grandness is the first company in China to successfully develop a series of products of loquat juice, from the loquat or pipa fruit which has long been favoured by Chinese consumers for its health-related benefits.Sino Grandness has experienced exponential revenue and earnings growth in the past two years due to its unique market positioning. We expect it to maintain its strong growth momentum.Sino Grandness plans to spin off its loquat juice business and list it separately in Hong Kong, which could provide additional upside for the share price, given the lofty valuations accorded to Hong Kong-listed food and beverage companies in similar businesses.IHH HealthcareRecommendation: HoldTarget price: RM3.70/S$1.43IHH owns Gleneagles, Mount Elizabeth and Parkway East hospitals after acquiring Parkway Holdings in 2010. IHH is now the world's second-largest listed hospital operator, with leading positions in Singapore, Malaysia and Turkey. It also has a presence and investments in mainland China, India, Hong Kong, Vietnam, Macedonia and Brunei. IHH's long-term plan is to expand into attractive markets in Asia as well as Central and Eastern Europe, the Middle East and North Africa while continuing to strengthen its presence in existing markets.However, with a large number of hospitals in these markets expected to be completed over the next three years, we advise caution on execution risks. We still like IHH's long-term story but current valuations leave little margin for error.All views or information expressed or provided in this article belong to Maybank Kim Eng Research only, and are provided for general information purposes only. They do not constitute financial advice nor any offer or solicitation to invest in any securities or other investments.For the full disclaimer, please visit .maybank-ke.com.sg/docs/ResearchArticleDisclaimer.pdf自存倉