Demand for healthcare services buoys outlook for KPJ Healthcare

KPJ Healthcare Bhd expects continued growth in demand for healthcare services, on the back of rising mental and physical healthcare awareness as well as the shifting healthcare focus from hospitalisations towards preventive care.

The healthcare group said a resurgence in elective medical procedures and recovery of the health tourism sector is also expected to bode well for the group in the current year.

“In FY2022, the group is focused on improving efficiencies, quality and productivity of its hospitals and investments through the implementation of its transformation plans and cost optimisation strategies.

“The group will continue to expand its existing capacity to address the increase in demand from patients and consistently improving on patient care delivery,” it said in a filing with Bursa Malaysia.

“Despite the improved performance, the uncertainty of the global economy remains to be our biggest challenge. Notwithstanding this, the group believes that it will be able to deliver long-term growth for all stakeholders,” it added.

KPJ’s net profit jumped almost four-fold to RM27.01mil in the second quarter ended June 30 (2Q) compared with RM6.96mil in the same quarter last year.

Its revenue in 2Q rose 12% to RM707.6mil against RM632.8mil registered in the year prior while earnings per share climbed to 0.63 sen from 0.17 sen last year.

During the quarter under review, patient visits and BOR increased to 802,840 and 51% from 758,629 and 41%, respectively in the same quarter in 2021.

KPJ has declared an interim dividend of 5.5 sen. The dividend will go ex on Sept 29 and payable on Oct 21.

For the six months ended June 30, 2022, net profit stood at RM49.29mil up 147% from RM19.93mil while revenue grew 9.7% to RM1.36bil against RM1.24bil last year. The Star