IHH Healthcare - CGS-CIMB Research 2023-12-02: Scope For Better Profitability

• During its analyst briefing held on 1 Dec 23, IHH Healthcare (SGX:Q0F) identified 5 pillars of growth to support continued revenue growth, and targets double-digit ROE ahead. They include:
  1. organic bed expansion,
  2. - Read this at SGinvestors.io -
  3. developing new growth engines,
  4. accretive M&A and
  5. turnaround of underperforming assets.

Room for EBITDA expansion with strong underlying demand

• In Malaysia, bed occupancy rate (BOR) improved to 74% in 3Q23, the highest in the past year, with growth in both local and foreign patients. IHH Healthcare sees room for improvement from the addition of new beds across the country.
• India’s EBITDA margin rose to a historical high of 21.8% in 3Q23, with scope to grow given IHH Healthcare’s ongoing portfolio evaluation of its hospitals.
• - Read this at SGinvestors.io -
• In Hong Kong, 3Q23 operations were affected by the typhoon in Sep, resulting in only modest revenue growth of 0.6%, but IHH Healthcare has ramped up opex ahead of new bed openings, resulting in EBITDA decline of 30.2% q-o-q.

Expanding across the healthcare continuum in Singapore & Hong Kong

• Read more at SGinvestors.io.

TAY Wee Kuang CGS-CIMB Research | https://www.cgs-cimb.com 2023-12-02 SGinvestors.io

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