KUALA LUMPUR (June 22): KPJ Healthcare Bhd is targeting strong growth for the financial year ending Dec 31, 2023 (FY2023), supported by growing inpatient volumes, as well as a higher number of hospital beds, and improvement in bed occupancy rate.

“We see [the number] of patients, especially for elective treatment, is coming back. With the reopening of the borders, we are also seeing foreign patients coming in. Barring any unforeseen circumstances, we see the trend will continue,” the group’s chairman Datuk Md Arif Mahmood said on Thursday (June 22).

Speaking at a virtual media briefing on Thursday, Md Ariff also said the group's bed occupancy rate has improved to 58% in 2022 from 43% in 2021.

In addition, KPJ is actively seeking investments to expand by focusing on building more hospitals, the chairman said.

“We definitely have a positive outlook and plan to add 300 hospital beds this year alone," said Md Ariff.

According to its 2022 annual report, KPJ has 29 specialist hospitals with 3,607 hospital beds.

Asked on how the group is tackling the impact of high utility costs at its hospitals amid rising inflationary pressure, Md Ariff said: "Prudent cost management and waste reduction initiatives are integral to our approach. We have implemented various sustainability measures, including rainwater harvesting and energy-efficient practices."

According to the chairman, the group’s newest hospital Damansara Specialist Hospital 2, which was launched last month, is green-building-index (GBI) certified and designed to be energy-efficient, significantly reducing utility costs.

“We are also investing in environmentally friendly hospitals and non-hospital buildings to meet green building requirements. Several of our hospitals have already adopted rainwater harvesting systems for gardening, general use, and toilets. These hospitals are KPJ Bandar Dato’ Onn, KPJ Seremban, KPJ Ampang, and KPJ Selangor," said Md Ariff.

“To enhance energy efficiency, we have embraced technologies like light-emitting diode (LED) lighting and explored renewable energy sources like solar power. KPJ Penang's Eco-cooler project is an innovative example where upcycled materials create air circulation,” he explained.

The group’s net profit more than doubled to RM51.9 million for the first quarter ended March 31, 2023 (1QFY2023), from RM22.14 million in the previous year, as revenue rose to RM828.98 million from RM641.64 million.

For the full FY2022, net profit increased by 214% to RM171.99 million from RM54.79 million, while revenue increased to RM2.92 billion from RM2.59 billion.

At Thursday’s closing, KPJ was one sen or 0.89% lower at RM1.11, giving the group a market capitalisation of RM5.02 billion.

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