PETALING JAYA: IHH Healthcare Bhd
’s earnings forecast has been trimmed by 3% for the financial year ended Dec 31, 2025 (FY25), and by 4.2% and 4.6% respectively for FY26 and FY27 to account for the ringgit’s strength, says Hong Leong Investment Bank Research.
The brokerage said the revision considers the translation of the ringgit’s strength on the company’s Singaporean and Indian operations and does not reflect on any underlying fundamental weakness.
It noted that the ringgit’s strength and the 6% sales and service tax (SST) have had little impact on medical tourism from Indonesia, based on discussions with two key hospitals under IHH, Pantai Hospital Kuala Lumpur and Prince Court Medical Centre.
It added that currency strength and the SST affected Alpha IVF Group Bhd, with both hospitals attributing the minimal impact to the nature of their services, as in-vitro fertilisation remains a discretionary procedure while hospital services such as cancer, cardiac and orthopaedic care continues to be essential and relatively inelastic.
It has kept a “buy” call on IHH and raised the target price to RM10 from RM9.43 despite the earnings trim as the Sunway Healthcare Holdings Bhd initial public offering could be a catalyst for healthcare stocks, alongside potential foreign fund inflows.
