IHH Healthcare records RM470m net profit in Q1
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.