PMCK poised for growth with IPO plans
TA Research assumes a dividend payout of 20% to 44% across financial year 2025 (FY25) to FY27 and projects forward yields to be at 1.3% to 2.1%.
TA Research said for its initial public offering (IPO) price of 22 sen a share, PMCK is priced at a trailing price earnings ratio (PE) of 15.9 times based on FY24 earnings per share (EPS).
The research house forecast a target PE of 16 times FY26 EPS for the counter, while deriving a fair value of 23 sen a share.
PMCK is operating the Putra Medical Centre in Alor Setar, Kedah and has been in the business for over 30 years, offering specialist consultant services and clinical support, with 40 consultants across 17 specialisations. PMCK will raise RM60mil through its IPO on Bursa Malaysia.
It wants to strengthen its presence in northern Malaysia to attract patients and drive long-term revenue growth.
Thus far, Kedah has one of the lowest private hospital bed densities in Malaysia, highlighting a significant gap in private healthcare access.
As part of its expansion, PMCK is constructing a new medical centre, PMC Kulim, with operations targeted to start by the first quarter of financial year 2028 (1Q28).
The 12-storey private medical centre comes with a seven-storey mixed development comprising a four-storey hotel with a two-storey food court and carparks.
PMCK will consolidate the RYM DX Laboratory Sdn Bhd (medical lab) into PMC Kulim by 1Q28 to cater to increasing demand for diagnostic services.
It will upgrade the equipment and facilities in PMC Kedah under clinical support services (medical lab) and facilities services (radiology unit).
TA Research projects net profit to contract by 24.8% to RM11.3mil in FY25, as it expects patient numbers to drop by 20% due to the flooding in Alor Setar and surrounding areas, which hindered patient access.
It expects the profit after tax margin to decline to 12.1% (versus 14.4% in FY24) due to softer patient volumes and higher administrative expenses as PMCK's facilities remained fully operational during the heavy rainfall between September and December 2024.
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