PETALING JAYA: Analysts believe that healthcare services provider PMCK Bhd
is well positioned to capture demand in northern Malaysia’s under-served private healthcare market.
Maybank Investment Bank Research (Maybank IB) said improving patient throughput and a stable inpatient-driven revenue mix will be the core drivers that underpin its 11.5% financial year 2025 (FY25) to FY28 net profit compounded annual growth rate (CAGR).
“Beyond FY28, we expect a capacity ramp-up from the new 90-bed PMC Kulim hospital to support its next phase of expansion.
“We initiate ‘buy’ with a discounted cashflow-based target price of 35 sen a share.”
The research house said key risks to its call include slower ramp-up and higher costs, which may delay breakeven and pressure margins.
With regards to PMCK’s longer-term prospects, Maybank IB said it expects net profit CAGR to rise to 17.3% over FY28 to FY35, underpinned by the full ramp-up of the PMC Kulim hospital and higher patient throughput.
“While margins may ease slightly during the initial ramp-up phase (FY28 to FY30), we expect the new facility to reach earnings before interest, taxes, depreciation and amortisation breakeven within three years of full operations, and subsequently anchor long-term earnings growth as utilisation improves.
“We believe its capital structure remains sound amid its RM193mil expansion, supported by interest-only repayments on the RM166mil loan until the third quarter of FY27 and RM50mil initial public offering-funded debt reduction, underpinned by resilient cash flow from its core Alor Setar operations.”
Separately, Maybank IB noted that PMCK operates in the private healthcare market in northern Malaysia where capacity remains constrained. “Kedah and Perlis have private hospital bed ratios of only 3.05 and 1.28 per 10,000 population, far below Kuala Lumpur’s 17.71.”
It believes that patient demand should be supported by ageing demographics in Kedah and Perlis.
