IHH Healthcare - DBS Research 2024-03-01: Cruel Summer Is “Swift-ly” Over

• IHH Healthcare (SGX:Q0F)’s FY23 headline net profit almost doubled y-o-y to RM3bn, mainly led by some divestment gains (IMU Health, Gleneagles Chengdu, and Angsana).

FY23 normalised core net profit surpassed pre-COVID

• - Read this at SGinvestors.io -
• IHH Healthcare's 4Q23 EBITDA (ex-MFRS 129) grew 9% y-o-y (-5% q-o-q) with growth from all key segments (Singapore EBITDA +9%, India +15%, and Turkiye +10% y-o-y) except Malaysia (-8% y-o-y) and laboratory (-30% y-o-y).

EBITDA margins moderated due to higher staff costs and one-offs

• 4Q23 and FY23 EBITDA margins appear to have softened marginally to 20% and 22%, vs 22% and 23% in 4Q22 and FY22, respectively.
• - Read this at SGinvestors.io -
• Gleneagles HK recovered in 4Q23 after it was impacted by super Typhoon Saola in Sep 23. EBITDA continued to improve to RM48.4m (+57% q-o-q) and EBITDA margin improved to 15.6%, vs 10.6% in 3Q23 and 15.4% in 2Q23.
• ROE (w/o MFRS129) hit a double digit for the first time, at 12.3% in 4Q23, vs 9.9% in 3Q23.

Declared higher FY23 ordinary dividend of 9 cents/share (+29% y-o-y) and increased minimum dividend payout to 30%.

• Read more at SGinvestors.io.

Rachel Lih Rui TAN DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-03-01 SGinvestors.io

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