[%TFJU%] 
Research by RHB
Buy - TP RM2.13

"Still Hungry For Growth; Maintain BUY"

Keep BUY, with a lower MYR2.13 TP from MYR2.14, 15% upside. We walked away from KPJ Healthcare’s 2Q24 post results briefing feeling positive on its 2H24 prospects. We expect KPJ’s profitability to improve as its flagship hospital Damansara Specialist Hospital 2 (DSH2) remains well on track to see narrower LBT, thanks to better operating leverage. Our DCF- derived TP represents 15x 2024F EV/EBITDA, 2SD above its 5-year historical EV/EBITDA average of 12x. Our TP includes a 2% ESG premium.

Analyst:
Oong Chun Sung 
[%ouvi%]

$KLSE-KPJ 
Research by RHB
Buy - TP RM2.13

"Still Hungry For Growth; Maintain BUY"

Keep BUY, with a lower MYR2.13 TP from MYR2.14, 15% upside. We walked away from KPJ Healthcare’s 2Q24 post results briefing feeling positive on its 2H24 prospects. We expect KPJ’s profitability to improve as its flagship hospital Damansara Specialist Hospital 2 (DSH2) remains well on track to see narrower LBT, thanks to better operating leverage. Our DCF- derived TP represents 15x 2024F EV/EBITDA, 2SD above its 5-year historical EV/EBITDA average of 12x. Our TP includes a 2% ESG premium.

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