Tepid recovery for KPJ in 3QFy21
KuCHING: KPJ Healthcare Bhd (KPJ) reported a loss in earnings by 62.8 per cent year on year (y-oy) for its third quarter of financial year 2021 (3QFY21) but saw a surge by 81.6 per cent quarter on quarter (q-o-q) to RM12.6 million.
Cumulatively, for its first nine months of FY21 (9MFY21), earnings dropped by 61.7 per cent y-o-y to RM32.6 million – which was below estimates of MIDF Amanah Investment Bank Bhd (MIDF Research).
Revenue climbed by 10.3 per cent y-o-y and 10.4 per cent q-o-q to RM699 million.
For the cumulative 9MFY21, revenue rose up by 9.2 per cent yo-y to RM1.94 billion.
The higher revenue recorded was mainly due to active collaboration with the public healthcare sector for Covid-19 treatments, screening, laboratory testing, and vaccination services.
“Patient visits increased to 2,253,908 from 2,111,539 compared to 9MFY20.
“Hospitals also performed 61,880 surgery cases and 11,374 delivery cases, an increase of four per cent and 29 per cent, respectively.
“KPJ’s Malaysian operations reported a rise in revenue in 3QFY21 by 9.2 per cent y-oy and 10.3 per cent q-o-q to RM663.3 million.
“Meanwhile, earnings for the segment dropped by 25.6 per cent y-o-y but increased by 105.7 per cent q-o-q to RM55.8 million. Cumulatively for 9MFY21, revenue rose up by 8.7 per cent y-o-y to RM1.84 million but profit dropped by 31 per cent y-o-y to RM115.5 million.
“The increased in revenue were attributable to the lifting of lockdowns, the increased vaccination rate and services, the active management of Covid19 cases in KPJ hospitals, and the decantation of non-Covid-19 patients from public hospitals.”
Meanwhile, the decline in earnings were due to higher fixed costs, increased costs at operations from pandemic SOP compliance, and losses from new hospitals still in their development period.
Patient visits for operations in Malaysia increased to 2,084,740 from 1,974,822 compared to the corresponding period last year.
“KPJ will continue to operate in a challenging environment for the rest of FY21.
“Activities have been considerably hampered by lockdowns imposed in response to the resurgence of Covid-19,” MIDF Research highlighted,” it said in its own research.