HLIB Research expects the reratings materialising through valuation benchmarking, capital flow and narrative and perception shift.
PETALING JAYA: The initial public offering (IPO)-led rerating of the local healthcare sector could extend beyond hospitals in 2026, with the potential listings of several mega-healthcare groups in 2026, says Hong Leong Investment Bank (HLIB) Research.
Based on media reports, Sunway Healthcare Holdings Bhd is targeted for listing by March 26, and Asia OneHealthcare (formerly Columbia Asia Healthcare) is also planning an IPO before end-2026.
Both valuations are reported to be at least RM16bil in market capitalisation.
Beyond hospitals, pharmaceutical chains and primary care assets are also entering the IPO narrative, HLIB Research added.
Big Caring Group is reportedly exploring a 2026 IPO at up to RM20bil, while Qualitas Health Group may also pursue a Malaysia listing, but its visibility on timing and valuation remains limited.
According to HLIB Research, media reports suggest the offering could raise at least RM3bil to RM4bil, implying a meaningful market capitalisation.
With a broader slate of healthcare listings now emerging, the research house in a note to clients said: “We now believe that the visibility of these IPO events could catalyse a broader rerating across the healthcare sector in 2026, with the hospital segment remaining the key beneficiary, provided the IPOs are well-received by investors.”
The research house also expects these reratings materialising through valuation benchmarking, capital flow and narrative and perception shift.
Meanwhile, the Malaysia Year of Medical Tourism (MYMT) 2026 is seen as a supportive catalyst for the local healthcare sector.
With MYMT 2026, Malaysia is setting its sights on achieving about RM12bil in healthcare revenue by 2030.
Based on its revenue exposure to health tourism in Malaysia, HLIB Research noted that Alpha IVF Group Bhd has clearly emerged as the primary beneficiary, given its outsized exposure.
HLIB Research has maintained an “overweight” stance on the local healthcare sector for 2026.
The research house’s top “buy” picks include IHH Healthcare Bhd
with a target price of RM9.43, KPJ Healthcare Bhd at RM3.16 and Optimax Holdings Bhd rated as an additional “buy” at 96 sen per share.
It has also kept a “hold” call on UMediC Group Bhd with a target price of 35 sen.
