[%titr%] 
Research by Public
Outperform - TP RM7.68

"Another Record High Quarterly Revenue"

IHH Healthcare (IHH) reported a headline net profit of RM437m (+39% YoY) in 2QFY24, in tandem with another record-high quarterly revenue (+30% YoY) of RM6.1bn, mainly driven by sustained growth in inpatient volume across all markets. After excluding the MFRS129 effect and other non-operating items, IHH’s 2QFY24 core net profit was up 42% YoY to RM571m. The results exceeded both our and the street’s estimates at 57% and 63% of full-year forecasts, respectively. The discrepancy in our forecast is mainly due to higher-than-expected inpatient volume growth. We increase our FY24F forecast by 6% to factor in a higher number of inpatient admission and we maintain our FY25-26F earnings forecasts. All told, we reiterate our Outperform call on IHH, with a higher SOTP-based TP of RM7.68, based on 20x FY25 EV/EBITDA. IHH has declared an interim dividend of 4.5sen.

Analyst:
Thye May Ting
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$KLSE-IHH 
Research by Public
Outperform - TP RM7.68

"Another Record High Quarterly Revenue"

IHH Healthcare (IHH) reported a headline net profit of RM437m (+39% YoY) in 2QFY24, in tandem with another record-high quarterly revenue (+30% YoY) of RM6.1bn, mainly driven by sustained growth in inpatient volume across all markets. After excluding the MFRS129 effect and other non-operating items, IHH’s 2QFY24 core net profit was up 42% YoY to RM571m. The results exceeded both our and the street’s estimates at 57% and 63% of full-year forecasts, respectively. The discrepancy in our forecast is mainly due to higher-than-expected inpatient volume growth. We increase our FY24F forecast by 6% to factor in a higher number of inpatient admission and we maintain our FY25-26F earnings forecasts. All told, we reiterate our Outperform call on IHH, with a higher SOTP-based TP of RM7.68, based on 20x FY25 EV/EBITDA. IHH has declared an interim dividend of 4.5sen.

Analyst:
Thye May Ting
thye.mayting@publicinvestbank.com.my