PETALING JAYA: Analysts are overall positive on KPJ Healthcare Bhd
’s earnings growth, having taken into account the increase in medical tourism and more hospitals in its portfolio turning profitable.
TA Research in a report stated the expected hike in medical tourism is on the back of collaborations with local agencies in Indonesia as well as higher medical tourists arrivals via the visa-free entry decision, particularly from India and China.
“In our projection, we expect KPJ’s healthcare tourism revenue to increase by 68% to RM324mil in financial year 2024 (FY24). We believe KPJ Bandar Dato’ Onn, Johor Baru; KPJ Batu Pahat, Johor; and KPJ Perlis are on track to deliver their maiden profits in FY24,” TA Research said.
TA Research maintained its “hold” call on KPJ with a target price (TP) of RM2 per share.
Also sharing the same view, MIDF Research noted that alongside medical tourism, government support and advanced technology is also expected to translate to higher services demand in calendar year 2024.
MIDF Research also has a “buy” call on KPJ with an unchanged TP of RM2.54 per share based on the healthcare company’s strong performance locally following its focus on localising its operation.
Hong Leong Investment Bank Research expects a flattish year-on-year core earnings growth. It maintained a “hold” call on the stock with a higher TP of RM1.87 a share.
