PETALING JAYA: Analysts view earnings momentum for IHH Healthcare Bhd
to be building across the group’s main markets, supported by medical tourism in Malaysia, stabilisation in Singapore and rising margins in India.
RHB Research has kept its “buy” call and a target price of RM9.14 on IHH, pointing out that structural momentum will be coming from foreign patients, the shift to daycare/ambulatory care centre (ACC) formats, and early signs of stabilisation in Singapore despite payer noise.
TA Research upgraded the stock to “buy” with a higher RM9.67 target price, saying it remains optimistic about IHH’s prospects for the fourth quarter of this year (4Q25) and 2026, supported by robust demand and disciplined cost management.
Revenue from the healthcare group’s Malaysian operations grew 18% year-on-year in 3Q25 while earnings before interest, taxes, depreciation and amortisation (Ebitda) jumped 24%, lifting margins to 28%, with the increase being primarily driven by foreign patients and more serious cases.
TA Research noted that Malaysia delivered a 24% rise in Ebitda to RM353mil during the quarter, with inpatient revenue climbing to RM11,459 and admissions rising to 68,528.
The ongoing standoff with insurers has also cooled, with RHB Research saying discussions have concluded with “discounts of between 12% and 13% offered” as the group participates in a Joint Ministerial Committee that is exploring a national procurement framework to reduce input costs.
Procurement gains, volume growth and manpower efficiencies should, according to TA Research , allow margins to “remain resilient” despite the aforementioned discounts.
Another structural hinge for IHH is daycare, as RHB Research observed that daycare revenue for the nine months up to September reached about RM400mil, up 13% year-on-year, and expects the channel to grow substantially over time.
Meanwhile, IHH’s Singapore operations are turning a corner more slowly.
RHB Research said it believes 3Q25 marked the low point, with Mount Elizabeth Orchard fully reopened and with a third ACC operating beside Mount Elizabeth Novena, performance is expected to stabilise by 2Q26 .
The research house added that the group has “forked” its positioning, keeping the two Mount Elizabeth hospitals premium while Gleneagles and Parkway East pivot to packaged care aligned with insurer demands.
Despite an announcement by the Singapore Health Ministry of Nov 26, which introduced new rider rules for Integrated Shield Plans that raise minimum co-payments from April 2026, IHH told TA Research it does not expect private demand to be “meaningfully” affected, citing the urgency and service expectations of private patients.
