Latest news with #KPJHealthcareBhd
New Straits Times
3 days ago
- Business
- New Straits Times
KPJ Healthcare downgraded as valuations catch up: Analyst
KUALA LUMPUR: CIMB Securities has downgraded KPJ Healthcare Bhd to a "Hold" from "Buy", saying the group's share price has largely priced in operational improvements and the new management's swift execution. In a note to clients, analyst Walter Aw said KPJ Healthcare's stock, which has surged 26.5 per cent year-to-date, is now trading close to two standard deviations above its five-year forward average valuation. "At current levels, we believe valuations have caught up with fundamentals. The stock is now trading at a premium compared to its larger peer IHH Healthcare Bhd, based on projected 2026 earnings," he said. Despite the downgrade, the firm raised its sum-of-parts-based target price for KPJ Healthcare to RM3 from RM2.80 previously, reflecting a higher valuation multiple of 12.3 times for the group's hospital operations. The group's first quarter core net profit rose 23.6 per cent year-on-year to RM63.3 million, in line with consensus estimates. Revenue climbed seven per cent to RM971.8 million on increased bed capacity and higher patient volume. However, the results were weaker on a quarter-on-quarter basis, with core net profit down 48.2 per cent from the fourth quarter of 2024, due to seasonal trends. Aw said earnings momentum is expected to pick up in subsequent quarters, supported by bed capacity expansion, improved cost controls and narrowing losses from five newer hospitals that are still in their gestation phase. CIMB Securities projects KPJ Heatlcare's core net profit to grow 12.9 per cent year-on-year in 2025, with revenue forecasted to rise 9.1 per cent to RM4.28 billion. The group's bottom line is expected to benefit from ongoing cost optimisation, better operating leverage, and a strategy to attract more patients by building centres of excellence and hiring more specialists. Despite these growth levers, the firm warned of downside risks including lower-than-expected patient traffic, slower hospital ramp-ups and thinner margins. KPJ Healthcare was last traded at RM2.72, giving it a market capitalisation of RM12.31 billion.
New Straits Times
6 days ago
- Business
- New Straits Times
KPJ Healthcare shares fall to one-month low, volume at year high
KUALA LUMPUR: Shares of KPJ Healthcare Bhd fell nearly 10 per cent in active trade on Friday, with volume surging to its highest level this year, after the group reported a drop in first-quarter earnings. The stock was the third most actively traded on Bursa Malaysia, opening at RM2.88, down 2.7 per cent from yesterday's close of RM2.96, before slipping 9.8 per cent to a morning low of RM2.67. At 11.05am, KPJ was trading at RM2.72, down 8.11 per cent to its lowest in over a month, with 30.95 million shares changing hands. This marked its highest single-day volume since Dec 13, 2024. Year-to-date, KPJ shares were still up 15.7 per cent, having started the year at RM2.35. This values the group at about RM12.27 billion. Yesterday, KPJ announced a 21.7 per cent decline in net profit to RM57 million for the first quarter ended March 31, 2025, down from RM72.8 million a year earlier, despite revenue rising seven per cent to RM971.8 million. The group attributed the weaker earnings to higher operating expenses and increased depreciation stemming from ongoing investments in new and existing hospital infrastructure. KPJ said it remains committed to its expansion strategy, which includes the development of new specialist hospitals and the enhancement of digital health services to meet evolving patient needs. There are at least 17 research firms covering the stock, according to Bursa Marketplace. Of these, 11 have a 'buy' call, five rate it a 'hold' and one recommends a 'sell'. The consensus 12-month target price stands at RM2.99, indicating an upside potential of about one per cent from Thursday's closing price.
New Straits Times
6 days ago
- Business
- New Straits Times
KPJ Healthcare's Q1 net profit falls to RM57mil, revenue up to RM971.8mil
KUALA LUMPUR: KPJ Healthcare Bhd recorded a net profit of RM57 million in the first quarter (Q1) of March 31, 2025, down 20 per cent from RM71 million in the same period last year Its revenue, however, increased 7.0 per cent to RM971.8 million from RM908 million previously, driven by the increase in patients' visits, as well as increased bed capacity. In a filing with Bursa Malaysia, the hospital operator said Malaysia segment contributed about 98 per cent of its total revenue, a 7.0 per cent increase from RM892.5 million last year. It added that the earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM210.3 million in Q1 was higher by 9.0 per cent, while pre-tax profit stood at RM101.2 million. Others segment recorded revenue of RM17.1 million for the current quarter, a 6.0 per cent increase from RM16.1 million previously. The Ebitda fell to RM1.6 million due to the impairment of land in an oversea associate operation, amounting RM6.2 million. Accordingly, its pre-tax loss decreased to RM3.4 million compared to a pre-tax profit of RM3.9 million previously. "In March 2025, KPJ Healthcare opened its 30th hospital in Kuala Selangor, further advancing its capacity and reinforcing its position as Malaysia's largest private healthcare provider. "The group remains cautiously optimistic about its prospects for the financial year 2025, bolstered by its ongoing asset optimisation programme, capacity expansion and efforts to enhance operational efficiency," the company added.
