KPJ HEALTHCARE BHD

KLSE (MYR): KPJ (5878)

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Last Price

2.01

Today's Change

0.00 (0.00%)

Day's Change

1.99 - 2.03

Trading Volume

8,508,200


4 people like this.

1,922 comment(s). Last comment by fairyz 3 hours ago

TunDiam

164 posts

Posted by TunDiam > 2021-09-02 14:25 | Report Abuse

dei neis give me the latest u dirty dogs

bowman

2,527 posts

Posted by bowman > 2021-09-03 08:14 | Report Abuse

Today, you will see KPJ resume uptrend based on yesterday's afternoon trades. TP of 1.15 is not unreachable

DickyMe

14,428 posts

Posted by DickyMe > 2021-09-07 17:12 |

Post removed.Why?

Solomon7

370 posts

Posted by Solomon7 > 2021-09-09 12:47 | Report Abuse

Could KPJ rise like IHH?

CHLEONG888

921 posts

Posted by CHLEONG888 > 2021-09-12 19:56 | Report Abuse

may be, another 3 years

Posted by wallstreetrookie > 2021-09-13 15:47 | Report Abuse

Maybe longer investment horizon would be needed to reach RM2

DickyMe

14,428 posts

Posted by DickyMe > 2021-09-13 16:50 |

Post removed.Why?

JK22

1,789 posts

Posted by JK22 > 2021-09-13 17:03 | Report Abuse

Drop 1cts , hope for 50cts ?

DickyMe

14,428 posts

Posted by DickyMe > 2021-09-13 17:55 |

Post removed.Why?

n3lly

51 posts

Posted by n3lly > 2021-09-14 13:49 | Report Abuse

you mean up 50c or drop to 50c? am confused.

x_abe81

107 posts

Posted by x_abe81 > 2021-09-29 13:56 | Report Abuse

why suddenly the spike? Privatization again?

Posted by Thinkcarefully > 2021-09-29 15:35 | Report Abuse

KPJ 1.18. 52 wk high

hoplanner

382 posts

Posted by hoplanner > 2021-09-30 18:24 | Report Abuse

Highest since July 2013 (1.16).

xox9989

112 posts

Posted by xox9989 > 2021-10-01 09:59 | Report Abuse

Yap. I heard this rumour of privatisation also. Offer price around RM1.80 wow.

xox9989

112 posts

Posted by xox9989 > 2021-10-01 10:04 | Report Abuse

The deal will announce very soon.

Karlos

1,263 posts

Posted by Karlos > 2021-10-01 11:15 | Report Abuse

Taking private or not is not really important as KPJ is still much unappreciated and undervalued at current prices although Johor Corp the controlling shareholder has indicated that it is considering taking KPJ private before Covid 19 appeared. KPJ owned and operated the largest no of hospitals in Malaysia and also operates hospitals in Thailand, Indonesia and Bangladesh. It also involves in medical training college and retirement homes in Australia.

Posted by Thinkcarefully > 2021-10-01 11:43 | Report Abuse

Rm1.23 is historical high

xox9989

112 posts

Posted by xox9989 > 2021-10-01 11:49 | Report Abuse

JCorp and TPG in shelved KPJ Healthcare privatisation bid?

A plan to privatise KPJ Healthcare Bhd by its largest shareholder Johor Corp (JCorp) had been in the works but has been shelved for now owing to the Covid-19 pandemic. The plan involved JCorp partnering global private equity fund TPG, say people with knowledge of the matter.

In early 2020, JCorp was considering its options for its investment in KPJ Healthcare and was looking at proposals from investors and bankers. It eventually decided to take the private hospital operator off Bursa Malaysia jointly with TPG, they add.

“There was a plan that was put into action to take KPJ Healthcare private early last year, and they were going to do it with the help of TPG. However, the plan was shelved due to the Covid-19 pandemic,” says a source.

This is not the first time that JCorp has opted to work with a private equity fund. In December 2011, the Johor state-owned investment company partnered with CVC Capital Partners to take QSR Brands Bhd and its subsidiary KFC Holdings (M) Bhd private.

Questions sent to JCorp on the privatisation of KPJ Healthcare were unanswered as at press time.

Any privatisation offer must ensure that JCorp will hold the majority stake in the privatised company, the people say. This is because KPJ Healthcare is one of JCorp’s most valuable investments apart from QSR and KFC.

JCorp’s stake in KPJ Healthcare is held by Capaian Aspirasi Sdn Bhd. Through the company, it owns 44.2% of KPJ Healthcare, which at last Friday’s closing price of RM1.02 is worth RM2 billion.

It also has interest held via an Islamic trust, through Waqaf An Nur Corp Bhd.



In the first quarter ended March 31, 2021 (1QFY2021), KPJ Healthcare’s net profit declined 62.4% to RM15.24 million, owing to a fall in revenue as a result of lower patient numbers. The group recorded 712,547 patients in 1QFY2021, compared with 743,970 patients in the same quarter in 2020.

During the quarter, KPJ Healthcare’s earnings before interest, taxes, depreciation and amortisation (Ebitda) declined 18% year on year to RM125.8 million, while its profit before tax (PBT) plunged 63% to RM20.2 million.

The sharper decline in PBT was due to fixed costs remaining constant in the quarter, despite the group registering lower revenue and Ebitda.

The Covid-19 pandemic and the various Movement Control Orders (MCOs) affected KPJ Healthcare’s operations, with its bed occupancy rate (BOR) in 1QFY2021 plunging to 39%, from 65% in the corresponding quarter last year.

Owing to the extended MCOs this year, KPJ Healthcare’s BOR has continued to remain low. In May, the rate was just around 38%. Analysts expect it to have remained low in the second quarter of the year, with the reimplementation of the MCO.

Despite the low BOR, KPJ Healthcare still has to cover its fixed costs, which include staff costs, depreciation and amortisation and finance costs.

Over the past one year, the company’s share price has risen about 27.2% to last Friday’s close of RM1.02.

At this price, if JCorp were to take over KPJ Healthcare, it would have to fork out at least RM2.2 billion, which should not pose a problem for JCorp if it partners TPG, as the latter has US$96 billion (RM404 billion) worth of assets under management.

According to TPG’s website, it has invested a total of US$11.5 billion in healthcare, of which US$7.4 billion was invested in the past decade. Its investments in the sector range from pharmaceutical companies to technology and data providers.

According to sources, TPG plans to build a regional chain of primary healthcare hospitals through the tie-up with KPJ Healthcare. The KPJ chain of 28 hospitals in Malaysa would complement the Columbia Asia Hospital chain that TPG acquired in September 2019 together with the Hong Leong group for US$1.2 billion.

The Hong Leong Group and TPG joint venture acquired 17 Columbia Asia hospitals and one clinic in a transaction touted as one of the largest in the healthcare space in recent years. It involved Columba Asia’s 12 hospitals in Malaysia, three in Indonesia and two in Vietnam. Columbia Asia’s 11 hospitals in India were not part of the deal.

Last month, Singapore’s sovereign wealth fund GIC Pte Ltd signed a deal with Sunway Bhd to acquire a 16% stake in Sunway Healthcare Holdings Sdn Bhd for RM750 million. There is a plan for Sunway and GIC to list Sunway Healthcare in the next six to eight years. The deal values Sunway Healthcare, which currently has just two hospitals, at RM4.69 billion.

Karlos

1,263 posts

Posted by Karlos > 2021-10-01 12:16 | Report Abuse

EPF had been buying this counter steady for some time already

xox9989

112 posts

Posted by xox9989 > 2021-10-01 12:20 | Report Abuse

Offer price RM1.80 ?

xox9989

112 posts

Posted by xox9989 > 2021-10-01 12:23 | Report Abuse

going to suspend soon pending major announcement.

CUTLOST

5,178 posts

Posted by CUTLOST > 2021-10-01 12:27 | Report Abuse

Thanks KPJ..never disappointed

mariam

82 posts

Posted by mariam > 2021-10-01 12:28 | Report Abuse

healthcare business up in future

Posted by stockpro18 > 2021-10-01 12:47 | Report Abuse

heard take over, offer price similar to MMC....probably at 1.9 level

still got upside to go....should be limit up very soon

n3lly

51 posts

Posted by n3lly > 2021-10-01 13:16 | Report Abuse

Won’t be 1.9. Can’t value KPJ like normal hospital as they don’t own most of the hospital as it’s been spun off to REIT. Plus talking about VC/PE, and in this case TPG that bough Columbia, they must have idea to combine, restructure and relist. At most probably 1.4-1.5.

Posted by stockpro18 > 2021-10-01 13:21 | Report Abuse

too low no one will sell to you...

even assume low side of 1.5, still got upside, the call warrant can easily go to 20 sen under best case scenario

Posted by HexagonChamp > 2021-10-01 13:51 | Report Abuse

Limit up

xox9989

112 posts

Posted by xox9989 > 2021-10-01 14:10 | Report Abuse

LIMIT UP

Posted by stockpro18 > 2021-10-01 14:34 | Report Abuse

better buy now, may suspend at anytime

Posted by SpicyMcDeluxe > 2021-10-01 14:40 | Report Abuse

kekw

mariam

82 posts

Posted by mariam > 2021-10-01 14:45 | Report Abuse

many people goes hospital

Posted by wallstreetrookie > 2021-10-01 14:46 | Report Abuse

Haha I told you all to buy right.

Posted by wallstreetrookie > 2021-10-01 14:46 | Report Abuse

The rumours about acquisition have been going on forever. Now Bloomberg has published the article. Now I can *legally* post the rumour on i3 now. Congrats, KPJ investors

Posted by wallstreetrookie > 2021-10-01 14:46 | Report Abuse

U.S. private equity firm TPG Capital and Malaysian state-owned investment company Johor Corp. are considering a plan to take Malaysia’s KPJ Healthcare Bhd. private, according to people with knowledge of the matter.

The San Francisco-based firm and the investment arm of the Johor state government are in talks with banks to finance the potential deal involving Malaysia’s largest private-hospital operator, said the people. Shares in KPJ jumped as much 12% in Kuala Lumpur on Friday.

:))

Posted by wallstreetrookie > 2021-10-01 14:47 | Report Abuse

KPJ Healthcare Berhad Maintain Overweight & Strong-buy

Even though EBITDA and profit before tax fell 7% and 30%, we are still optimistic on the outlook that the demand of healthcare continues to rise at 5% YoY and population growth at a consistent 0.6% YoY. The lower-than-expected EBITDA margins could deter long-term investors, however, we opine that the reason why the higher fixed cost and lower operating efficiency are a mere consequences of a short-term government policy to curb the spread of Covid-19.

Short term price target: RM2.00 Long term price target: RM2.8

bowman

2,527 posts

Posted by bowman > 2021-10-01 14:49 | Report Abuse

It's Friday. Consider lucky if there is no profit-taking. Buyers this morning would have been tempted to sell after such a high run

DreamEmperor

3,340 posts

Posted by DreamEmperor > 2021-10-01 14:51 | Report Abuse

yah gah

DreamEmperor

3,340 posts

Posted by DreamEmperor > 2021-10-01 14:52 | Report Abuse

sure boh

DreamEmperor

3,340 posts

Posted by DreamEmperor > 2021-10-01 14:52 | Report Abuse

how you know leh

DreamEmperor

3,340 posts

Posted by DreamEmperor > 2021-10-01 14:53 | Report Abuse

walaoweyyhhh

DreamEmperor

3,340 posts

Posted by DreamEmperor > 2021-10-01 14:53 | Report Abuse

still surging up wor

minher

317 posts

Posted by minher > 2021-10-01 14:54 | Report Abuse

Deliberations are still ongoing and the firms could decide not to go ahead with the plan, said the people.

DreamEmperor

3,340 posts

Posted by DreamEmperor > 2021-10-01 14:55 | Report Abuse

jangan mayin mayin pinya wor

DreamEmperor

3,340 posts

Posted by DreamEmperor > 2021-10-01 14:55 | Report Abuse

lont play play one wor

minher

317 posts

Posted by minher > 2021-10-01 14:55 | Report Abuse

mean no deal at the moment.

Posted by wallstreetrookie > 2021-10-01 14:57 | Report Abuse

It is still a good company to invest, whether there is a buyout rumour or not.

Posted by wallstreetrookie > 2021-10-01 14:58 | Report Abuse

Overweighted healthcare company.

bowman

2,527 posts

Posted by bowman > 2021-10-01 14:58 | Report Abuse

get out first and see what happens monday

Posted by wallstreetrookie > 2021-10-01 15:00 | Report Abuse

The stock will trade like Hill-Rom (NYSE). If you want to front-run the stock, refer to Hillrom-Baxter merger.

Posted by stockpro18 > 2021-10-01 15:14 | Report Abuse

purposely press down so that the offeror can collect.....very smart

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