IHH Healthcare shares jump as company books profit turnaround
03:47, 27 August 2021
IHH Healthcare, the operator of Gleneagles hospital, booked strong earnings due partly to COVID-related healthcare in the April-June period, sending its shares soaring.
The company on late Thursday (26 August) reported a net profit of MYR483.31m (USD115.3m) in three months ending June, reversing a loss of MYR120.64m in the corresponding period a year earlier. Revenue jumped nearly 67% year-on-year to MYR4.37bn.
In early trade on Friday, shares in the dual-listed hospital operator rose 7.9% to MYR6.30 on the Malaysia stock exchange, and jumped 9% to SGD2.05 on the Singapore bourse.
Returning patients
Unlike previous year, when the first wave of the pandemic hit, patients have returned to hospital this year.
“Our performance rebounded beyond pre-COVID levels on three key drivers: Firstly, our relentless focus on delivering excellent care for patients has seen more return to our hospitals; secondly, our ability to provide COVID-related services in support of government healthcare efforts, especially by ramping up our laboratory and diagnostic services; and thirdly, the strong cost discipline we continue to maintain,” managing director and CEO Kelvin Loh, said in a statement.
In the first six months of the year, the company's revenue surged 34% to MYR8.22bn while net profit amounted to MYR858.93m, in contrast to MYR440.43m losses in the year-ago period.
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Singapore and Malaysia core markets
In Singapore, where it operates Mount Elizabeth, Gleneagles and Parkway, it saw inpatient admissions rose 22% in the April-June period while average occupancy was at 55%. Revenue jumped 57% to MYR1.3bn, contributing around 30% to the company’s total revenue.
Revenue in Malaysia, where the company operates medical healthcare brands of Gleneagles, Pantai and Prince Court, surged 53% to MYR662.4m, contributing 15% to total revenue. Inpatient admissions was up 26% while average occupancy was at 48%.
IHH Healthcare also has operations in Greater China, India, and Turkey.
“While we may face unpredictable short-term headwinds amid the ever-evolving pandemic situation, we are confident of our longer-term trajectory. Given the Delta variant causing a resurgence worldwide, the situation remains fluid,” Loh said.
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