KPJ’s 2Q18 revenue grew 3% yoy but fell 3% qoq to RM801m. The positive performance was largely driven by the Malaysia operations. KPJ attributed the yoy growth to increased number of patients and complex cases per inpatient. Pre-tax profit margin expanded to 8% (2Q17: 6%) mainly contributed by better associate contribution.
Its 2Q18 core profits increased 13% qoq and 39% yoy to RM46m. The increase was largely due to cost optimisation initiatives. At pre-tax level, earnings were up 29% yoy, yet flat qoq to RM61m.
The segment faced challenges where occupancy rate for Rumah Sakit Bumi Serpong fell to 32% (2Q17: 41%) whilst gains from the higher occupancy rate at Permata Hijau (2Q18: 54%; 1Q17: 37%) was diluted by the strong ringgit.
A second interim dividend of 0.5sen was declared and paid during the quarter. We expect a total dividend of 1.9 sen for FY18, translating to dividend yield of 1.7% at current level.
KPJ’s share price has done well recently, gaining 12% the past month. We maintain hold with SOP-derived TP of RM1.00. We expect its earnings will pick up in 2H18 to meet our FY18 forecast, as 1H18 experienced lower patient numbers registered due to long festive season holiday, according to the management.
Source: BIMB Securities Research - 17 Aug 2018
Chart | Stock Name | Last | Change | Volume |
---|
Created by kltrader | Aug 12, 2024
Created by kltrader | Aug 12, 2024
Created by kltrader | Aug 09, 2024
Created by kltrader | Aug 09, 2024