PETALING JAYA: KPJ Healthcare Bhd
is targeting a 56% increase in its total bed capacity in four years.
By 2030, the largest domestic private healthcare group by capacity targets the addition of 2,200 new beds to its current count of 3,934 beds.
The targeted growth is a 9.3% five-year compounded annual growth rate across nine hospitals.
According to UOB Kay Hian (UOBKH) Research, the expansion will prioritise high-occupancy facilities and be aligned with the group’s regional hub-and-spoke model.
This would enable more efficient scaling of capacity and better utilisation of resources across its network, it said.
KPJ’s five-year strategic plan from 2026-2030 will mark its shift from a traditional network of hospitals to a health system focused on clinical excellence, research and education.
This will be supported by centres of excellence (CoEs) in four key specialties such as heart and lung, oncology, neurology and stroke and orthopaedics, supported by artificial intelligence diagnostics, genomics and value based care.
The group said the CoEs will function as the primary hubs for complex and specialised treatments, while simpler day-care procedures are channelled to other hospitals and ambulatory care centres.
By concentrating on higher-acute cases at CoEs, the strategy should lift revenue intensity while improving the utilisation of existing assets.
To support these expansion plans, KPJ plans to add 500 new consultants by 2030 to add to the current base of about 1,500 consultants and with the addition of 15 new operating theatres.
UOBKH Research noted growth for the group is being driven by medical tourism with 2025 of this segment’s revenue reaching RM263mil or 6.2% of revenue and grew 13% year-on-year.
“The group aims to sustain double-digit growth for 2026 by expanding regional outreach and strengthening market penetration in key neighbouring countries.
“Through targeted marketing, regional partnerships and specialised clinical offerings, KPJ is positioning itself to capture rising cross-border patient flows into Malaysia’s private healthcare sector,” it said.
“We adjust our 2026-2028 earnings forecasts by 2%, 5% and 3.5% to factor in KPJ’s updated brownfield expansion and revised margin assumptions,” the research house added.
It pointed out potential key downside risks include a potential tightening of regulatory policy, delays in brownfield expansion and any inability to pass on operating cost increases to customers.
Meanwhile, UOBKH Research noted KPJ Kuala Selangor turned earnings before interest, taxes, depreciation and amortisation positive within four months of commencing operations in August 2025.
It is expected to achieve pre-tax profit breakeven by year-end, added the research house.
KPJ’s Damansara Specialist Hospital 2 will have longer gestation times due to its ongoing capacity expansion as an additional 75 beds are being planned on top of its existing 127 beds, UOBKH Research said.
The research house maintained its “buy” call on KPJ with a higher target price of RM3.40 from RM3.05 on revised earnings and price to earnings multiple of 36.8 times from 34.1 times before.
