By Ying Xian Wong

KUALA LUMPUR, Malaysia--Sunway Healthcare soared on its trading debut, defying volatile market sentiment amid the Iran conflict.

Shares of the Malaysian conglomerate's healthcare arm opened at 1.70 ringgit, equivalent to $0.43 on Wednesday and climbed as much as 26% from the IPO price of 1.45 ringgit.

Sunway Healthcare raised about $736.3 million in its IPO, marking Malaysia's largest listing in nearly a decade.

The company said fourth-quarter 2025 net profit rose to 112.4 million ringgit, from 78.4 million ringgit a year earlier, driven by higher patient volumes and expanded licensed bed capacity. Quarterly revenue rose 21% on year to 614.6 million ringgit.

Sunway Healthcare remains cautiously optimistic about 2026, supported by resilient private healthcare demand, stabilizing new hospitals and ongoing efficiency efforts. The company added that the deferral of the Diagnosis Related Group system--which reimburses cases at a fixed rate regardless of actual treatment costs--to 2027 provides greater clarity and more time to strengthen operational readiness.

The Iran conflict could indirectly raise costs and disrupt medical supply chains due to geopolitical uncertainty and higher oil prices. However, Malaysia's diversified supply network and robust healthcare system should help maintain stable service delivery, the company said.

Sunway Healthcare is expected to post a 20.5% increase in core profit this year, Hong Leong Investment Bank said, citing earnings improvement at its facilities, particularly in Penang, while hospitals in Damansara and Ipoh have recently turned profitable.

Growth prospects are supported by expanding hospital capacity, the Sunway ecosystem and a potential inclusion in the benchmark Kuala Lumpur Composite Index, said analyst Chee Kok Siang.

Write to Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

March 17, 2026 22:14 ET (02:14 GMT)

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