- 2Q22 (ex-MFRS 129) saw strong rebound in IHH Healthcare (SGX:Q0F)'s normal business post reopening, offsetting a significant decline in COVID-19 related services, thus sustaining revenue at high levels. Malaysia saw strong recovery while Turkey saw decline in margins.
Key highlights on IHH Healthcare operations
- - Read this at SGinvestors.io -
- All markets recorded strong revenue intensity except Malaysia and India. All key markets saw a higher revenue intensity, particularly from Singapore (+23% y-o-y) and Turkey (+16% y-o-y, partly from price increase for inflation) while India and Malaysia saw decline by 15% y-o-y and 7% y-o-y respectively.
- Gleneagles HK contributed a RM5m EBITDA despite the lockdown in 2Q22; progressively opening beds to 300 by year-end. Despite the outbreak of COVID-19 in Hong Kong during 1H22, Gleneagles HK contributed a RM5m EBITDA in 2Q22 vs RM0.1m in 1Q22 and RM2.4m in 4Q21. The ramp-up of the hospital has been progressing well and management will likely open beds to 300 by year-end (from ~200 currently).
- - Read this at SGinvestors.io -
- IHH laboratories’ business normalised with the tapering of COVID-19 testing; revenue was ~31% higher than pre-COVID levels but EBITDA margins fell. IHH Laboratories saw businesses normalise with the decline in COVID testing. While 2Q22 revenue is higher by ~31% vs the pre-COVID level, EBITDA margins fell to 19% vs 25% pre-COVID.
- Medical tourism has returned and should help offset the tapering off COVID-19 related services; we expect this trend could remain strong in the near-term due to pent-up demand
- IHH Healthcare has entered into a definitive agreement for the sale of IMU in Jun’22 for a total enterprise value of RM1.35bn.
- IHH Healthcare continues to expand in Turkey with the purchase of Orthopedia Hospital in Adana on 9 Aug 2022.
Key takeaways from IHH Healthcare's analysts briefing.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Rachel TAN DBS Group Research | https://www.dbs.com/insightsdirect/ 2022-08-29
Read also DBS's most recent report:
2024-03-01 IHH Healthcare - Cruel Summer Is “Swift-ly” Over.
Previous report by DBS:
2023-03-02 IHH Healthcare - Stronger Comeback Post-COVID.
Price targets by 2 other brokers at IHH Healthcare Target Prices.
Listing of research reports at IHH Healthcare Analyst Reports.
Relevant links:
IHH Healthcare Share Price History,
IHH Healthcare Announcements,
IHH Healthcare Dividends & Corporate Actions,
IHH Healthcare News Articles
