IHH Health­care records RM470m net profit in Q1

New Straits Times - - Business -

KUALA LUMPUR: IHH Health­care Bhd’s net profit al­most dou­bled in the first quar­ter ended March 31, this year, to RM470 mil­lion, up a whop­ping 99.61 per cent over RM235 mil­lion recorded in the first quar­ter of fi­nan­cial year 2016.

Rev­enue for the health­care com­pany grew 8.46 per cent to RM2.68 bil­lion com­pared with RM2.47 bil­lion recorded in the first-quar­ter of last year.

“Amid per­sis­tently chal­leng­ing mar­ket con­di­tions, we de­liv­ered a re­silient per­for­mance. We con­tin­ued to grow across all our home mar­kets and are well placed to cap­ture at­trac­tive op­por­tu­ni­ties,” said IHH man­ag­ing di­rec­tor and chief ex­ec­u­tive of­fi­cer Dr Tan See Leng in a state­ment filed with Bursa Malaysia yes­ter­day.

He said in March, the pre­mium health­care ser­vices provider launched two flag­ship projects, namely Gle­nea­gles Hong Kong Hospi­tal, which will an­chor its Greater China growth strat­egy, and Aciba­dem Al­tunizade Hospi­tal, the largest hospi­tal in Turkey.

“In the year ahead, we will build on our suc­cesses by en­hanc­ing ser­vice of­fer­ings and ex­e­cut­ing well on the projects in our pipe­line. We will also con­tin­u­ally re­bal­ance our port­fo­lio to op­ti­mise re­turns and fo­cus on our core op­er­a­tional strengths,” said Tan.

PublicIn­vest Re­search is­sued a “neu­tral” call on IHH Health­care Bhd shares with an un­changed tar­get price of RM6.03 as the com­pany re­bal­anced its port­fo­lio in In­dia.

The re­search house cites Reuters and some news por­tals hav­ing re­ported that IHH is ex­it­ing Apollo Hos­pi­tals En­ter­prise Ltd by sell­ing its en­tire 4.78 per cent stake for RM558 mil­lion.

This is be­ing done be­cause, strate­gi­cally, IHH prefers man­age­ment con­trol, said PublicIn­vest Re­search.

“Given IHH’s pref­er­ence for man­age­ment con­trol, and hav­ing ac­quired Global Hos­pi­tals chain and Con­ti­nen­tal Hos­pi­tals, it is just in­tu­itive for the pre­mium health­care ser­vices provider to re­bal­ance its port­fo­lio in or­der to re­alise its strengths and ca­pa­bil­i­ties in the In­dia mar­ket, on top of gain­ing ex­tra cash in hand for de­vel­op­ment and work­ing cap­i­tal pur­poses,” the re­search house said in its re­port.

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