KPJ Healthcare chalks up higher profit and revenue for second quarter

PETALING JAYA: KPJ Healthcare Bhd’s net profit rose 31.6% to RM42.34mil in the second quarter ended June 30 from RM32.17mil in the corresponding quarter last year on higher revenue and lower administrative expenses.

During the quarter in review, the healthcare services provider saw its revenue increasing 2.9% to RM801.33mil, driven by its operations in Malaysia. The group’s earnings per share (EPS) rose to 0.96 sen from 0.71 sen previously.

KPJ has declared a second inter- im dividend of 0.50 sen per share, bringing the total payout year-todate to one sen per share.

During the quarter in review, the group said revenue from its Malaysian operations rose 3% yearon-year (y-o-y) to RM777.7mil.

“The improved performance was mainly contributed by the increase in number of patient episodes and complex cases per inpatient, particularly for KPJ Rawang, KPJ Bandar Maharani and KPJ Pasir Gudang,” KPJ said.

“Besides, increased activities at the support companies also contributed to the revenue growth. In the current quarter, KPJ Perlis has commenced its operations,” it added.

KPJ shares closed unchanged yesterday at RM1.14.

For the six months to June 2018, KPJ’s net profit rose 20% to RM84.82mil from RM70.44mil in the previous corresponding period, resulting in its EPS rising to 1.93 sen from 1.61 sen.

For the period in review, the group’s revenue rose 4.3% to RM1.64bil from RM1.56bil previ- ously, driven by the Malaysian segment, which registered a 5% y-o-y increase in revenue to RM1.58bil.

“Higher revenue was mainly contributed by the increase in the number of patient episodes and complex cases per inpatient, particularly for KPJ Rawang, KPJ Pasir Gudang and KPJ Bandar Maharani with the expanding of beds by 45% as compared to the number of beds in 2017.

“The increase in revenue was also attributed by the organic growth from the existing hospitals,” KPJ said.

The group reckoned that rising cost would continue to pose a challenge to its bottom line for the financial year ending Dec 31, 2018. Hence, to ensure earnings growth, KPJ said it would focus on disciplined cost management through innovative approaches in operational excellence from the financial and other related aspects.

As for other segments, the group said it would continue to remain focused and put in a robust strategy to deliver improved results.