KPJ Healthcare Likely to Post Stronger 2H Earnings

Dow Jones
08/19

0125 GMT - KPJ Healthcare's 2H earnings could pick up, driven by higher revenue intensity, patient volumes and continued cost optimization, says TA Securities analyst Tan Kong Jin in a note. Health tourism remains a key growth area, with its contribution to KPJ at about 6.5%, versus around 15% for peers IHH Healthcare and Sunway Healthcare, he notes. KPJ plans to expand its centers of excellence to 15 over the next five years, focusing on stroke, cancer, cardiovascular and orthopaedic care. It also targets adding about 2,200 beds to reach 6,270 by end-2030, on rising demand for private healthcare from an ageing population, he adds. TA Securities has a buy rating and target price of 3.61 ringgit. Shares are 2.6% higher at 3.10 ringgit.

 

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