IHH Healthcare Shares Down After Posting Lower First Quarter Net Profit
KUALA LUMPUR, May 30 (Bernama) -- IHH Healthcare Bhd shares fell in the mid-morning trading session after the hospital operator posted a lower net profit in the first quarter of its 2025 financial year (1Q FY2025).
At 10.58 am, IHH dropped six sen to RM6.85, with 2.23 million shares changing hands.
IHH’s net profit fell to RM514 million in 1Q FY2025 from RM768 million in 1Q FY2024, while revenue rose to RM6.29 billion from RM5.96 billion.
The improved revenue was due to gains in the hospital and healthcare segments, as well as Parkway Life REIT (PLife REIT), the company stated.
Public Investment Bank Bhd (Public IB) and Hong Leong Investment Bank Bhd (HLIB) said IHH’s first quarter results were in line with both their expectations and those of the market, and they have maintained their earnings forecasts for the healthcare provider for the fiscal years 2025 and 2026.
Public IB said IHH’s capacity expansion plans remain firmly on track, with a targeted increase of over 30 per cent in bed capacity to nearly 4,000 beds by 2028, with about 1,000 beds added in FY2024.
In 1Q FY2025, it noted that IHH expanded its footprint with the opening of the 127-bed Acibadem Kartal Hospital in Turkey and is on track to complete the acquisition of the 228-bed Shrimann Superspeciality Hospital in India by FY2025. Additionally, bed capacity at the Mount Elizabeth Orchard Hospital in Singapore is gradually being restored as part of a three-year renovation project scheduled for completion in 2025.
“Despite headwinds, particularly from rising operating and energy costs, we believe the resilient demand for quality healthcare services, supported by IHH’s strong fundamentals and focused strategic initiatives, positions it well to deliver sustainable growth amid global macroeconomic uncertainties.
“We reiterate our outperform call on IHH with an unchanged sum-of-the-parts-based target price (TP) of RM8.64,” it added.
Meanwhile, HLIB said IHH is set for sustained growth, underpinned mainly by its plans to increase bed capacity and an initial public offering-led re-rating for its Malaysian operations.
“We introduce FY2027 core profit after tax and minority interests of RM2.26 billion (9.0 per cent rise year-on-year) on IHH and maintain our buy recommendation on the healthcare provider, with a higher sum-of-the-parts-derived TP of RM9.06,” it said.
-- BERNAMA