IHH Healthcare posts RM236m in 3Q net profit on stronger contribution from its operations

KUALA LUMPUR (Nov 29): IHH Healthcare Bhd reported a net profit of RM236.34 million for the third quarter ended Sept 30, 2019 (3QFY19) compared to a net loss of RM104.07 million a year ago.

The regional healthcare group said the quarterly profit was driven by sustained organic revenue growth at existing operations.

The boost to earnings also came from Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital, both opened in March 2017. In addition, Amanjaya Specialist Centre and Fortis Healthcare (“Fortis”), which was acquired in October and November last year respectively, helped to lift the group’s quarterly earnings as well, according to the filing with Bursa Malaysia.

Its earnings per share came in at 2.44 sen compared to a loss per share of 1.53 sen.

Quarterly revenue jumped 74.35% year-on-year to RM3.79 billion from RM2.84 billion. Earnings before interest, tax, depreciation and amortisation expanded by 34% to RM828.9 million from RM616.8 million.

The improved 3QFY19 lifted its cumulative net profit for the nine-month period ended Sept 30 by four times to RM510.85 million from RM118.27 million a year ago, while revenue grew 32.6% to RM11.08 billion from RM8.36 billion.

In a separate statement, IHH's chief executive officer and executive officer Dr Kelvin Loh said the group delivered another strong set of financial results for 3QFY19 as the group prioritised operational synergies and integration.

“The proposed acquisition of Prince Court Medical Centre is set to enhance our leadership position in Malaysia.

He added that the group’s proactive stance to recalibrate our non-Lira loans in Acibadem has also reduced its exposure to currency volatility in Turkey.

“In India, Fortis delivered another impressive performance as we continue to see healthy momentum with an improvement to its operational profitability in both the hospital and diagnostics business.”

As for progress in Greater China, he said the group continues to ramp up operations at Gleneagles Hong Kong where there is a demand to serve more patients.

On prospects, IHH said it will further consolidate its multi-country portfolio strategy to diversify its earnings base in cashflow-generative markets such as Singapore and Malaysia, capture medium-term growth momentum from Turkey and long-term growth opportunities from India and Greater China.

IHH’s shares closed one sen lower at RM5.37, bringing it a market capitalisation of RM47.12 billion. It saw some 4.65 million shares traded.