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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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
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