PETALING JAYA: Sunway Healthcare Holdings Bhd (SHH) remains cautiously optimistic about its prospects for the financial year ending December 2026 (FY26), supported by resilient demand for private healthcare services, the gradual stabilisation of newly opened hospitals and continued efforts to optimise capacity and operational efficiency.
The group said the Health Ministry’s decision to defer the implementation of the Diagnosis Related Group system to 2027 provides greater clarity for the industry, allowing operators more time to prepare their systems and clinical documentation processes.
However, it noted geopolitical tensions, including the recent Iranian war, could indirectly affect the sector through supply chain disruptions and higher medical supply costs linked to rising oil prices.
Against this backdrop, the integrated healthcare provider reported solid financial performance for FY25, driven by capacity expansion, resilient patient demand and contributions from newly operational hospitals.
The group posted revenue of RM2.2bil in FY25, representing a 19% year-on-year (y-o-y) increase from RM1.85bil a year earlier. Despite that, net profit came in slightly lower at RM252.2mil compared with RM257.5mil in FY24.
Operationally, inpatient admissions rose 8% y-o-y to 114,425, while revenue per inpatient admission increased 7% to RM11,614, reflecting higher case complexity and a stronger mix of foreign patients.
As of January 2026, SHH had 1,805 licensed beds and a total bed capacity of 1,982, providing additional room for expansion.
For the fourth quarter ended Dec 31, 2025 (4Q25), revenue climbed 21% to RM614.6mil from RM506.7mil in the same quarter a year earlier.
Bottom line also increased in line, surging 43.3% y-o-y to RM112.4mil.
Hospital operations remained the group’s primary revenue driver, generating RM603.3mil in 4Q25, up 21% from RM497.3mil previously.
The improvement was supported by higher patient volumes across its hospital network, including contributions from Sunway Medical Centre (SMC) Damansara and SMC Ipoh, which commenced operations in December 2024 and April 2025 respectively.
Inpatient admissions for the quarter rose 12% to 31,692, while revenue per inpatient admission increased 6% to RM11,724.
Foreign patient revenue also grew significantly, rising to RM91.5mil from RM59.7mil a year earlier, driven mainly by patients from Indonesia, China and Cambodia.
For the full year, hospital operations generated RM2.16bil in revenue, up 19% from RM1.82bil previously.
Foreign patient revenue expanded 38% to RM304.7mil, reflecting strong growth in medical tourism, particularly at SMC Sunway City and SMC Penang.
The group also expanded its licensed bed capacity to 1,777 as at end-2025 from 1,396 previously, an increase of 381 beds or 27% year-on-year.
Overall bed occupancy stood at 69% based on operating beds, while established hospitals recorded a higher utilisation rate of 73%.
SHH said the ramp-up of its newly opened hospitals has progressed steadily.
SMC Damansara recorded its first earnings before interest, taxes, depreciation and amortisation (Ebitda)-positive month in August 2025 and achieved its first profit-before-tax-positive month in January 2026.
Meanwhile, SMC Ipoh reported its first Ebitda-positive month in January 2026.
President and non-independent executive director Datuk Lau Beng Long said the results reflected the group’s ability to scale its healthcare network while maintaining strong demand.
“Our FY25 performance demonstrates the strength of Sunway Healthcare’s integrated healthcare ecosystem and the sustained demand for high-quality private healthcare services in Malaysia,” he said.
“Even with FY25 marking a year of rapid expansion with the opening of SMC Damansara and SMC Ipoh, the group delivered strong revenue growth by maintaining our commitment to clinical excellence and expanding our share in the medical tourism market.”
SHH operates a network of hospitals across Malaysia, anchored by its flagship SMC Sunway City, which has 848 licensed beds and serves both domestic and international patients.
The group plans further expansion with new tertiary hospitals planned in Seremban, Putrajaya and Iskandar Puteri, targeting a combined capacity of more than 3,400 beds by 2032.
SHH is set to debut on the Main Market on March 18.
