KPJ posts four-fold spike in 3Q net profit; declares one sen dividend

KUALA LUMPUR (Nov 23): KPJ Healthcare Bhd posted a four-fold spike in its net profit for the third quarter ended Sept 30, 2022 (3QFY22) to RM54.28 million from RM12.64 million in the previous year’s corresponding quarter, on improved hospital activities.

It declared a single tier interim dividend of one sen per share, to be paid on Dec 28, the group said in a bourse filing on Wednesday (Nov 23). Earnings per share rose to 1.25 sen from 0.29 sen.

KPJ’s revenue for the quarter under review was RM809.16 million, up 15.77% from RM698.96 million in 3QFY21. This is supported by the improving hospital activities, evidenced by the increase in patient visits (to 910,995 patients from 782,732 patients) and bed occupancy rate (from 43% to 64%).

“The new opening of Damansara Specialist Hospital 2 (DSH2) on Sept 1 has also started to contribute to the group’s quarterly performance. The revenue performance contributed to a 38% increase in Ebitda (earnings before interest, taxation, depreciation and amortisation) at RM203.6 million in 3QFY22 (3QFY21: RM147.9 million),” according to KPJ.

Its net profit for the nine months ended Sept 30, 2022 (9MFY22) soared 218% to RM103.57 million from RM32.57 million, as revenue increased to RM2.17 billion from RM1.94 billion.

KPJ noted that the current period’s results show that the group has returned to its pre-pandemic performance, and matched the results in 2019.

“The group is expecting to maintain its momentum for the remaining months of the current year, backed by the improving efficiencies, quality and productivity of its hospitals, and investments through the implementation of its transformation plans and cost optimisation strategies,” KPJ commented on its prospects.

Further, it will continue to expand its existing capacity to address the increase in demand from patients and consistently improve on patient-care delivery.

“The opening of DSH2 as the flagship hospital in the current quarter will add value and accelerate further growth for the group,” KPJ concluded.

At the closing bell on Wednesday (Nov 23), KPJ shares rose half a sen or 0.58% to 86 sen. This values the group at RM3.87 billion. The counter has fallen 18.87% since the beginning of this year.