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New Straits Times
01-06-2025
- 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.
The Sun
30-05-2025
- Health
- The Sun
Industry revenue soars to new record of RM2.7 billion in 2024
PETALING JAYA: The Malaysian health tourism industry recorded a new high in 2024, with revenue reaching RM2.72 billion, surpassing its target for the year by 9%, said the Malaysia Healthcare Travel Council (MHTC). It said the industry achieved a record volume after serving over 1.6 million foreign patients in private healthcare facilities nationwide last year, an 18% year-on-year increase. MHTC is an agency under the Health Ministry entrusted with positioning and promoting Malaysia as a healthcare travel destination. It said it has 82 healthcare providers registered under its membership programme, including 58 private hospitals, 20 ambulatory care centres and four dental clinics. 'This programme comprises elite members and ordinary members, each reflecting a commitment to world-class standards and patient trust. All members undergo a rigorous evaluation process conducted by a committee of experts in healthcare and regulatory compliance. 'Our elite members represent the most prestigious private healthcare institutions in the country. These hospitals are internationally recognised and hold accreditations from respected global bodies, such as the Joint Commission International, Malaysian Society for Quality in Health, Australian Council on Healthcare Standards, Temos International and the Reproductive Technology Accreditation Committee. 'These institutions demonstrate world-class clinical excellence, patient safety and healthcare delivery. 'Our ordinary members are selected through a stringent evaluation process by a selection committee comprising government and private sector representatives. These hospitals uphold Malaysia's high standards of medical care and quality service, and hold at least one international or national accreditation.' The council highlighted the impact that health tourism has on the country's economy as it not only drives revenue, but also creates employment opportunities and stimulates growth in ancillary sectors, such as hospitality, transportation and retail. 'MHTC is targeting RM12 billion in healthcare travel revenue by 2030 through our integrated healthcare strategy, which combines modern medicine, traditional and complementary medicine, wellness and rejuvenation, and anti-ageing. 'Integrated Healthcare will provide holistic care for patients and synergise the value chain within the industry. This drives exponential value growth, including revenue and profit to the private healthcare sector and government, and will set Malaysia at the crest of healthcare tourism in the world.' The council said the top medical disciplines sought by travellers in 2024 included gastroenterology, obstetrics and gynaecology, orthopaedic surgery, oncology, ear, nose and throat, and cardiology. 'Malaysia's top five health tourism markets are Indonesia, China, India, Singapore and the United Kingdom,' it said.
The Sun
30-05-2025
- Health
- The Sun
Malaysia health tourism revenue hits RM2.72 billion in 2024
PETALING JAYA: The Malaysian health tourism industry recorded a new high in 2024, with revenue reaching RM2.72 billion, surpassing its target for the year by 9%, said the Malaysia Healthcare Travel Council (MHTC). It said the industry achieved a record volume after serving over 1.6 million foreign patients in private healthcare facilities nationwide last year, an 18% year-on-year increase. MHTC is an agency under the Health Ministry entrusted with positioning and promoting Malaysia as a healthcare travel destination. It said it has 82 healthcare providers registered under its membership programme, including 58 private hospitals, 20 ambulatory care centres and four dental clinics. 'This programme comprises elite members and ordinary members, each reflecting a commitment to world-class standards and patient trust. All members undergo a rigorous evaluation process conducted by a committee of experts in healthcare and regulatory compliance. 'Our elite members represent the most prestigious private healthcare institutions in the country. These hospitals are internationally recognised and hold accreditations from respected global bodies, such as the Joint Commission International, Malaysian Society for Quality in Health, Australian Council on Healthcare Standards, Temos International and the Reproductive Technology Accreditation Committee. 'These institutions demonstrate world-class clinical excellence, patient safety and healthcare delivery. 'Our ordinary members are selected through a stringent evaluation process by a selection committee comprising government and private sector representatives. These hospitals uphold Malaysia's high standards of medical care and quality service, and hold at least one international or national accreditation.' The council highlighted the impact that health tourism has on the country's economy as it not only drives revenue, but also creates employment opportunities and stimulates growth in ancillary sectors, such as hospitality, transportation and retail. 'MHTC is targeting RM12 billion in healthcare travel revenue by 2030 through our integrated healthcare strategy, which combines modern medicine, traditional and complementary medicine, wellness and rejuvenation, and anti-ageing. 'Integrated Healthcare will provide holistic care for patients and synergise the value chain within the industry. This drives exponential value growth, including revenue and profit to the private healthcare sector and government, and will set Malaysia at the crest of healthcare tourism in the world.' The council said the top medical disciplines sought by travellers in 2024 included gastroenterology, obstetrics and gynaecology, orthopaedic surgery, oncology, ear, nose and throat, and cardiology. 'Malaysia's top five health tourism markets are Indonesia, China, India, Singapore and the United Kingdom,' it said.
The Sun
21-05-2025
- Business
- The Sun
Oasis Harvest Q1 revenue drops to RM2.72m amid streamlined F&B operations
KUALA LUMPUR: Bursa Malaysia-listed food and beverage (F&B) player Oasis Harvest Corporation Bhd reported a net loss of RM0.97 million on the back of RM2.72 million in revenue for the first quarter (Q1) ended March 31, 2025 (FY25). The decline in revenue for the quarter, from RM3.72 million in the same quarter last year, was primarily due to the streamlined operations in the F&B segment. Oasis had strategically reduced its Uncle Don's restaurant outlets from six to three, in line with its ongoing efforts to optimize costs and enhance profitability. Commenting on the quarterly results, executive director Ch'ng Eu Vern said the reported loss for Q1 FY25 was largely influenced by strategic operational restructuring aimed at ensuring its future growth remains sustainable. 'While the closure of some outlets impacted our immediate revenues, these decisions were necessary steps to maintain cost discipline and improve the overall operational efficiency of our restaurant business,' he said. Ch'ng further explained the difference in comparative profitability, noting, 'It's important to highlight that the corresponding quarter last year included a RM2.1 million contingent consideration waiver, which positively impacted our results previously. 'Excluding this exceptional item, our current financial performance is aligned with expectations, reflecting ongoing adjustments designed to deliver longer-term financial stability and improved shareholder returns,' he said. Despite the near-term challenges, Oasis successfully generated positive cash flow from operating activities amounting to RM0.86 million during the quarter, indicating healthy underlying operational efficiency and prudent management of working capital. Moving forward, Oasis remains confident in its long-term strategic direction. 'We continue to invest in improving customer experiences, refining our menu offerings, and enhancing cost control measures across all outlets. 'These initiatives are critical for guaranteeing sustainable growth and delivering consistent value to our shareholders over the long run,' Ch'ng added. The group maintains a cautiously optimistic outlook, bolstered by its strategic position in the Klang Valley, which continues to show resilience even amid global economic uncertainties. Oasis remains committed to strengthening its F&B business, exploring complementary sectors within the travel, leisure, and hospitality ecosystem to diversify revenue streams and enhance shareholder value. Ch'ng said Oasis remains confident in its long-term strategic direction.
