[%iZvv%]
Research by RHB
Buy – TP RM 2.14

"Achieved a Historic Milestone; Keep BUY”

Maintain BUY, with unchanged MYR2.14 TP and 15% upside. KPJ Healthcare’s 2Q24 core earnings grew 66% YoY to MYR79m, bringing its 1H24 numbers to MYR125m, accounting for 43% and 42% of ours and Street’s expectations. We deem the results to be in line as we expect stronger quarters ahead underpinned by improvements in operating leverage from hospitals under gestation. Our DCF-derived TP represents 15x 2024F EV/EBITDA, 2SD above its 5-year historical EV/EBITDA average of 12x. We incorporate a 0% ESG premium/discount given KPJ’s ESG score equals the country median.

Analyst:
Oong Chun Sung
[%KKxZ%]

$KLSE-KPJ
Research by RHB
Buy – TP RM 2.14

"Achieved a Historic Milestone; Keep BUY”

Maintain BUY, with unchanged MYR2.14 TP and 15% upside. KPJ Healthcare’s 2Q24 core earnings grew 66% YoY to MYR79m, bringing its 1H24 numbers to MYR125m, accounting for 43% and 42% of ours and Street’s expectations. We deem the results to be in line as we expect stronger quarters ahead underpinned by improvements in operating leverage from hospitals under gestation. Our DCF-derived TP represents 15x 2024F EV/EBITDA, 2SD above its 5-year historical EV/EBITDA average of 12x. We incorporate a 0% ESG premium/discount given KPJ’s ESG score equals the country median.

Analyst:
Oong Chun Sung
chun.sung@rhbgroup.com