Latest news with #RM768
Barnama
3 days ago
- Business
- Barnama
IHH Healthcare Shares Down After Posting Lower First Quarter Net Profit
BUSINESS 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.
Business Times
3 days ago
- Business
- Business Times
IHH Healthcare revenue could soften on medical inflation measures
[SINGAPORE] IHH Healthcare will likely face 'some softening of (patient admissions) and revenue' from measures the group has implemented to combat medical inflation in Malaysia, but the situation has 'improved considerably', said its group chief executive Dr Prem Nair on Friday (May 30). The group is now negotiating directly with insurers, offering more packages and discounts, he said. Issues that triggered the medical inflation issue, such as a weak ringgit, have 'abated significantly'. '(Medical inflation) has not fully gone away, but we have all now come to the table,' said Dr Nair, noting that the group is also in discussion with various parties including Malaysia's health ministry and life insurance association to curb medical inflation. The group in February guided that the country's current sustained period of medical inflation may affect IHH Healthcare's profit margins. Bank Negara Malaysia cited data indicating that medical cost inflation in Malaysia reached 15 per cent in 2024, above the global and Asia-Pacific average of 10 per cent, and rolled out measures to tackle the high costs. Dr Nair noted that although Malaysia now faces sustained medical inflation, these issues previously occurred in other markets IHH Healthcare has operations in. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up These countries have since come up with ways to manage high costs. For example, in Singapore, the government formed a committee for payers, providers and regulators to discuss, he said. 'Payer-provider issues have been with us in healthcare for the longest time... and it will never go away because there is a third party paying for the patient,' said Dr Nair. 'I can guarantee it will come up again in another country, and we will have to use the same playbook to manage these issues as well.' He was speaking at an analyst briefing after the group's first-quarter earnings. IHH Healthcare posted net profit of RM514 million (S$156.3 million) for the three months ended Mar 31, down 33 per cent from RM768 million in the corresponding year-ago period. Despite the impact of medical inflation and the Ramadan fasting period on Malaysia, contributions from Island Hospital in Penang resulted in the segment's revenue gaining 17 per cent year on year to RM1.1 billion. The segment's earnings before interest, taxes, depreciation and amortisation gained 14 per cent on year to RM273 million. The group in November last year completed the acquisition of the hospital. This resulted in a 'robust increase in in-patient admissions (in Malaysia), up 6 per cent', said group chief corporate officer Ashok Pandit. Group chief financial officer Dilip Kadambi added that without the medical tourism-focused Island Hospital, revenue growth in Malaysia would have been 'probably flattish' with a slight increase. Meanwhile, Singapore's Mount Elizabeth Hospital, which is currently operating at a lower capacity as it undergoes renovations, is on track to fully reopen by Q3 this year, said the group's senior management. 'While Q2 continues to be soft, we anticipate a reasonable rebound in the second half of the year. This recovery will be driven by successful negotiation with payers and completion of Mount Elizabeth Hospital renovations,' said Kadambi. Maybank Securities analysts Nur Natasha Ariza and Yin Shao Yang said the results are in line with expectations and IHH Healthcare's growth outlook remains intact, as it looks to add around 4,000 beds in several markets by 2028. 'Despite some geopolitical, structural and regulatory challenges across the different countries, we stay bullish on resilient demand and growing case-mix intensity as IHH remains focused on organic and opportunistic inorganic growth,' they said.
Business Times
3 days ago
- Business
- Business Times
Stocks to watch: IHH Healthcare, Keppel, Jardine Matheson, Cordlife
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Friday (May 30). IHH Healthcare : The integrated healthcare operator on Thursday posted a 33 per cent fall in net profit to RM514 million (S$156.3 million) for its first quarter ended Mar 31, from RM768 million the year before. The drop came mainly from a lower net monetary gain from the application of MFRS 129, and the recognition of a deferred tax credit in 2024 arising from the revaluation of certain assets in Turkey, the mainboard-listed group said. Shares of IHH Healthcare closed flat at S$2.09 on Thursday, before the results were announced. Keppel : The company has appointed former DBS chief executive Piyush Gupta as deputy chairman and non-executive independent director of its board, effective Jul 1. Gupta will also be appointed a member of the nominating committee, remuneration committee and the board sustainability and safety committee in July. Shares of Keppel closed at S$6.85, up S$0.06 or 0.9 per cent on Thursday, before the announcement. Jardine Matheson Holdings : The Hong Kong-based conglomerate on Thursday announced the appointment of Lincoln Pan as chief executive officer designate as group managing director John Witt retires from the company as at end-November. Pan, a partner and co-head of private equity at investment business PAG, will join to helm the group as CEO with effect from Dec 1. The counter ended on Thursday 2.2 per cent or S$1 higher at S$45.60. Cordlife : The company has appointed Novus Corporate Finance as the independent financial adviser for a voluntary conditional cash partial offer it has received from a Thai company, said the private cord-blood bank on Thursday. Medeze Treasury, a wholly owned subsidiary of Thai-listed stem cell company Medeze Group, had offered to buy a 10 per cent stake in Cordlife, or about 25.6 million shares, at S$0.25 apiece. Shares of Cordlife closed flat at S$0.27 on Thursday.
New Straits Times
3 days ago
- Business
- New Straits Times
IHH healthcare Q1 net profit falls to RM514mil
KUALA LUMPUR: IHH Healthcare Bhd has recorded a drop in net profit to RM514 million in the first quarter of its financial year ending Dec 31, 2025 (1Q FY2025) from RM768 million in 1Q FY2024. Revenue for the quarter under review rose to RM6.29 billion from RM5.96 billion last year, due to gains in the hospital and healthcare segments and Parkway Life REIT (PLife REIT), the company said in a filing with Bursa Malaysia. "Hospital and healthcare revenue in 1Q FY2025 increased by 7.0 per cent to RM6.05 billion, driven by sustained demand for quality healthcare services, a case-mix of more acute patients, and price adjustments to counter inflation. "The consolidation of Island Hospital, which was acquired in November 2024, also contributed to the increase in revenue," it said. IHH Healthcare added that PLife REIT's external revenue for 1Q FY2025 rose 15 per cent to RM45 million, driven by contributions from the 11 nursing home properties in France acquired in December 2024. The company remains in a strong position, given its track record in delivering high-quality and cost-effective healthcare. By leveraging operational synergies across its international network, IHH Healthcare remains confident in its ability to maintain cost efficiency while upholding its commitment to value-based healthcare. "Despite global economic and geopolitical headwinds, the group remains well poised to navigate uncertainties, underpinned by strong fundamentals, strategic growth initiatives, and long-term healthcare megatrends," it said
Business Times
3 days ago
- Business
- Business Times
IHH Healthcare Q1 profit falls 33% to RM514 million on exceptional items
[SINGAPORE] Integrated healthcare operator IHH Healthcare on Thursday (May 29) posted a 33 per cent fall in net profit to RM514 million (S$156.3 million) for its first quarter ended Mar 31, from RM768 million the year before. The drop came mainly from a lower net monetary gain from the application of MFRS 129, and the recognition of a deferred tax credit in 2024 arising from the revaluation of certain assets in Turkey, which was granted by the Turkish government, the mainboard-listed group said in a bourse filing. MFRS 129 requires financial statements of an entity, the functional currency of which is the currency of a hyperinflationary country, to be restated as the measuring unit current at the end of the reporting period. Excluding exceptional items, IHH's net profit rose 5 per cent to RM425 million on core operational growth, from RM403 million the year before. Revenue for the quarter rose 6 per cent to RM6.3 billion, from RM6 billion the year before. This was mainly attributable to increased contributions from Malaysia, Turkey and Europe, despite the Ramadan holiday period affecting many markets in Q1 2025, the group said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Earnings per share stood at 5.83 sen for the quarter, down from 8.72 cents in the year-ago period. No dividend was declared for the quarter, unchanged from a year ago. The group noted rising demand for healthcare domestically and across its key markets – which include Malaysia, Singapore, Turkey, India and Greater China – and 'continued revenue growth' driven by healthcare megatrends. It added that it will focus on driving profitability and sustaining a healthy return on equity, while maintaining prudent capital management and mitigating inflationary and interest-rate pressures. To future-proof its business, the group has initiated a multi-year transformation plan with seven focus areas: clinical excellence; patient experience; new care models; operational excellence; payor and regulator engagement; employee and doctor value proposition; and the advancement of technology, data and artificial intelligence. Dr Prem Kumar Nair, group chief executive officer of IHH Healthcare, attributed the group's 'resilient operational performance' in Q1 2025 to an improvement in in-patient volumes and higher revenue intensity across some markets. The group remains on track to achieve its goal of expanding capacity by 4,000 beds, with 1,000 beds already added in 2024, he added. Shares of IHH Healthcare closed flat at S$2.09 on Thursday, before the results were announced.
