IHH Healthcare - RHB Invest 2024-08-30: Advancing Towards A New Level Of Success; Stay BUY

• IHH Healthcare (SGX:Q0F)'s 1H24 core earnings of MYR839.8m were slightly ahead of our but missed consensus estimates – at 51% and 46% of FY24F earnings.
• The stronger-than-expected results were driven by sustained demand for healthcare services, better case-mix of more acute patients, and timely price adjustments to counter against inflation.
• - Read this at SGinvestors.io -

Results overview.

• Revenue from the hospital and healthcare (H&H) division increased 18% y-o-y to MYR5.7bn, driven by organic patient growth across the countries IHH Healthcare has a presence in (all four countries’ hospitals reported positive y-o-y growth in operating metrics).
• - Read this at SGinvestors.io -
• Staff costs rose notably by 39% y-o-y as IHH Healthcare ramped up its recruitment to align with its capacity expansion plan.
• Operational beds were largely flat y-o-y and q-o-q at 12,222. The bed occupancy rate (BOR) was flattish q-o-q at 70% (2Q23: 67%).

Segmental breakdown.

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Oong Chun Sung RHB Securities Research | https://www.rhbgroup.com/ 2024-08-30 SGinvestors.io

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