$IHH / 5225 (IHH HEALTHCARE BERHAD) -2Q24
IHH Healthcare has reported strong performance across several regions, showing significant growth in revenue, EBITDA, and core net profit for the first half of FY24.

Revenue Growth: Year-over-year (YoY), IHH’s revenue increased by 23% due to higher demand, more acute patient cases, and price adjustments. Revenue per inpatient admission rose notably in Türkiye (+51%), Singapore (+17%), India (+10%), and Malaysia (+9%). Quarterly (QoQ), the revenue increased by 3%, with Malaysia and India seeing higher inpatient admissions, although Türkiye experienced a decline due to seasonality.

EBITDA and Profit: EBITDA rose 13% YoY due to a higher yield from acute cases, with core net profit up by 30% YoY to RM840 million, supported by lower taxes. QoQ, core net profit increased by 6%.

Outlook: The company expects continued growth in FY24, driven by the return of foreign patients in Türkiye, resolution of nurse shortages in Singapore and Malaysia, and margin improvements from asset disposals. IHH plans to expand bed capacity by 33% by 2028, focusing on Malaysia and India, while increasing healthcare offerings in Singapore and Hong Kong.

Looking forward, IHH's growth prospects remain robust, particularly with plans to expand bed capacity by 33% by 2028, which should further enhance its ability to serve a growing patient base. The company’s strategy to overcome challenges like nurse shortages and geopolitical tensions by focusing on high-demand areas and cost management is sound. The return of foreign patients, especially in Türkiye, and expansion in healthcare services across Singapore and Hong Kong, will likely support sustained growth.

However, the company faces risks, including the potential impact of currency fluctuations on revenue from overseas operations and ongoing geopolitical instability. Additionally, the execution of its expansion plans, particularly in regions with staffing challenges, will be critical to maintaining its growth trajectory.