PETALING JAYA: IHH Healthcare Bhd
has delayed its target of 4,000 additional beds by two years, to 2030, according to Phillip Capital Research.
IHH, the largest listed hospital operator in Malaysia, has pivoted towards higher-acuity services and increased daycare procedures
This reduced the immediate need for large-scale inpatient bed additions, said the research house in a note.
“Capacity will be added selectively in hospitals with utilisation above 80%, prioritising brownfield expansions over greenfield projects, with growth largely funded through internal cash flows.
“The majority of bed expansion is expected in India.
“In Malaysia, the structural shift toward daycare is supportive, with management expecting daycare to contribute 10% to 15% of revenue over the next five to seven years, benefiting from faster bed turnover, higher revenue velocity and lower marginal capital expenditure.
“The medical tourism segment in Malaysia remains resilient, contributing about 15% of the country’s operations revenue despite ringgit appreciation,” said Phillip Capital Research.
It also said that inpatient admissions at Mount Elizabeth Hospital in Singapore and the revenue contributions are expected to stabilise in the second half of 2026..
Based on IHH’s guidance, inpatient admissions at Mount Elizabeth Hospital improved in December 2025 and January 2026.
Temporary dip is expected in February and March 2026 due to seasonal factors such as Chinese New Year and Hari Raya.
“Local patient revenue in Turkiye and Europe grew by more than 50%, partially diluting the foreign patient mix to 14% (from 15%) in 2025.
“In India, integration is on track, with management targeting to improve Fortis and Gleneagles margins through operational synergies.
“In the near-term, margins are expected to track mid-teens, while medium to long-term margins are anticipated to converge toward mid-20%,” added Phillip Capital Research.
The research house had maintained its “buy” call on IHH with an unchanged 12-month target price of RM10.27 per share.
“We expect IHH to sustain its growth momentum, supported by ongoing capacity expansion, rising patient volumes and resilient demand for elective procedures.
“Downside risks to our call include regulatory changes, weaker-than-expected inpatient volumes, and rising competition from private hospital peers,” Phillip Capital Research pointed out.
For the current financial year of 2026, Phillip Capital Research has forecast a 17.1% year-on-year jump in core net profit to RM2.13bil and a 11% increase in revenue to RM28.6bil.
