KPJ upgraded to ‘outperform’, analysts positive on stake disposal

PETALING JAYA: Publicinvest Research has upgraded its call on KPJ Healthcare Bhd to “outperform” from “neutral” with a target price of 95 sen.

The brokerage said it is positive on KPJ’S proposed disposal of its 80% stake in PT Khidmat Perawatan Jasa Medika (KPJM) for around Rm28mil to Irfan Jasri and Annie Trisusilo.

It said the exercise would enable the group to monetize the investment and redirect its resources to other areas.

The proposed disposal is part of a restructuring exercise of KPJ hospital operations in Jakarta, that would allow the group to fully comply with the licensing and regulatory requirements of the Indonesian authorities.

“The disposal price per share of around RM340,000 per share was valued at two times of KPJM’S net tangible asset value and was agreed between all parties on a willing buyer willing seller basis.

The group has entered into two separate share sale agreements with Irfan Jasri and Annie Trisusilo.

“We highlight that Annie Trisusilo is the current acting medical director of KPJ’S other hospital in Indonesia, RS Medika Bumi Serpong Damai,” Public Invest Research noted.

The research house said that KPJM, which operates hospitals in Indonesia namely, RS Medika Permata Hijau and RS Medika Bumi Serpong Damai, contributed profit before tax of merely RM636,000 in the first quarter of its financial year 2020.

As such, Publicinvest Research is not making any changes to KPJ Healthcare Bhd’s financial year 2020 (FY20)-FY22 forecast earnings.