- IHH Healthcare (SGX:Q0F)’s result missed on higher-than-expected tax rate and minority interest.
- We continue to favour IHH Healthcare for its strong execution, reputable regional footprint, and focus on affluent clientele, which together underpin earnings resilience.
Core PBT in line, but core PATAMI missed.
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- Core PBT was in line with our estimates, supported by robust operational fundamentals that led to EBITDA expansion of 1.8ppts q-o-q, while the deviation was due to a higher effective tax rate and minority interest.
Operational highlights.
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- Sequential revenue growth was driven by Malaysia (+8.1%), India (+3.2%), and Acibadem (+5.2%). The Singapore unit saw a 1.8% revenue drop on declines in both inpatient revenue intensity (- 1.6% q-o-q), and volumes (-1.1%).
- EBITDA margin improved to 23.3% (+1.8ppts q-o-q, +0.3ppts y-o-y), supported by Malaysia (+3.2ppts q-o-q, +1.5ppts y-o-y) on higher bed occupancy and progress in the containment of payer pressure and cost inflation. Acibadem followed (+2.5ppts q-o-q, +1.6ppts y-o-y) on better operating leverage from newly opened hospitals Kartal (Feb 2025) and Vitosha (May 2025), and India (+1.9ppts q-o-q, +1ppts y-o-y) on operational efficiencies.
Maintain BUY.
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