PETALING JAYA: IHH Healthcare Bhd
is expected to deliver a stronger quarter-on-quarter financial performance in the fourth quarter of this year (4Q25) led primarily by its Singapore and Turkiye operations.
IHH’s operations in Turkiye in particular were bolstered by growth in the Acibadem Healthcare Group, which operates a large network of hospitals and medical centers in Turkey, Bulgaria, North Macedonia, the Netherlands, and Serbia.
The contributions from Singapore and Turkiye to core profit after tax and minority interests will more than offset the smaller impact from the Indian operations, where IHH holds only a 31.2% stake in Fortis Healthcare, said Hong Leong Investment Bank Research (HLIB Research).
The research house said the healthcare company’s Malaysian operations stand to benefit from the Malaysia Year of Medical Tourism 2026.
Maybank Investment Bank Research (Maybank IB Research) expects the momentum to hold into next year, supported by Turkiye’s improving fundamentals, India’s patient recovery, and operational efficiencies,
The research house expects steady demand with an increase in medical tourism for the Malaysian operations and a utilisation ramp-up after renovations to Singapore’s Mt Elizabeth Orchard are completed.
The Mount Elizabeth Hospital is in the midst of “Project Renaissance”, a three-year, S$350mil or about RM1.1bil major refurbishment.
Maybank IB Research revised its forecasts on core net profit for IHH upwards for this year to 2027 by 5%, 1%, and 2%, respectively, on stronger revenue intensity in Singapore and India.
The research house lifted its target price to RM9.48 a share and maintained its “buy” call on the stock.
CIMB Research also maintained its “buy” call on IHH with a higher target price of RM9.40 a share but cut its core net profit forecasts for this year to 2027 by 9%, 11%, and 8%, respectively, to account for lower inpatient visits, higher operating costs, and a stronger ringgit.
MBSB Research made no changes to earnings its estimates for IHH though it revised its target price to RM8.25 a share and downgraded its call to a “neutral”.
The research house said it believes the positive trajectory of IHH’s operations experienced a significant run-up so far this year and expects limited upside in the near term.
It noted that there may be short-term pressure from potential bed closures in Mount Elizabeth Orchard following renovation work, and possible integration costs in the consolidation of Fortis and Gleneagles India, although it expects the latter to be a one-off.
Following the completion of the Fortis acquisition in India, IHH Healthcare said it now has greater flexibility to pursue growth and optimise its capital structure in the country.
RHB Research maintained its key operational assumptions but lowered its 2025 to 2027 earnings forecasts by 6% to reflect a higher tax rate and minority interest.
The research house reduced its target price marginally to RM9.14 a share and retained its “buy” call.
The key risks for IHH are weaker-than-expected economic growth dampening patient volumes, overpayment for acquisitions, aggressive cost inflation across the operating market resulting in the inability to pass on cost increases, and currency volatility leading to translation losses.
Kenanga Research maintained its earnings forecasts and target price of RM8.50 a share with a “market perform” rating.
The research house said it likes IHH for its pricing power, as inelastic demand for healthcare provides it the ability to pass on costs amid rising inflation, and the strong recovery in patient throughput from both domestic and international markets.
Its commanding market position in the private healthcare sector, with a presence in Malaysia, Singapore, Turkiye and Greater China, is also a positive factor.
Earlier this year, IHH chief executive officer Dr Prem Kumar Nair said the group is interested exploring expansion in Indonesia and Vietnam, citing healthcare reforms and regulatory easing in Indonesia and strong demand trends in Vietnam.
