PETALING JAYA: Sunway Healthcare Holdings Bhd remains cautiously optimistic of its current financial year, supported by structurally resilient demand for private healthcare services, progressive stabilisation of new hospitals and continued focus on asset optimisation and operational efficiency.
In a statement, the group said it will continue to navigate payor pressures and potential cost inflations caused by geopolitical uncertainties.
For its first quarter ended March 31, 2026, Sunway Healthcare’s net profit dipped to RM33.33mil from RM38.75mil in the previous corresponding period, primarily due to higher finance costs and depreciation following capacity additions.
“The group maintains a solid balance sheet, supported by healthy operating cash flows and moderated gearing following its recent initial public offering (IPO).”
Meanwhile, revenue grew to RM587.05mil from RM474.05mil a year earlier.
“Revenue growth during the quarter was supported by solid contributions from the group’s flagship SMC Sunway City, alongside continued ramp-up at SMC Velocity, SMC Penang, SMC Damansara and SMC Ipoh.
“The expansion of licensed bed capacity across the network continued to drive higher hospital activities.”
Sunway Healthcare said foreign patient revenue grew from RM58.8mil to RM86.6mil year-on-year, reflecting a robust growth of 47%.
“This increase was primarily attributable to the higher inflow of patients from Indonesia, China and Cambodia, underscoring the group’s strengthening position as a trusted healthcare provider within the region.”
Meanwhile, earnings before interest, taxes, depreciation and amortisation (ebitda) growth was underpinned by stronger underlying performance of newly operational hospitals, namely, SMC Damansara and SMC Ipoh, partially offset by higher cost base.
“These included staff costs and selling and marketing expenses, which were in line with capacity expansion as well as one-off costs associated with the group’s recent listing exercise.
“Excluding IPO-related expenses and other non-recurring costs, normalised ebitda increased by 28% year-on-year.”
In a separate statement, Sunway Healthcare said its 99%-owned subsidiary Sunway Medical Centre Sdn Bhd, has accepted a letter of offer from Sunway Sentral Seremban Sdn Bhd to acquire a parcel of freehold land measuring approximately 2.1 acres in Seremban, Negri Sembilan for RM10.79mil.
Sunway Healthcare said the proposed acquisition is in line with its overall strategy to expand its network of tertiary hospitals.
“The proposed development expands the group’s footprint into Negri Sembilan, capturing unmet demand for tertiary healthcare in the southern central region.
“Over the longer term, the aforesaid expansion will enhance the value of Sunway Healthcare group’s portfolio of healthcare offerings.”
The company added that growth prospects for the healthcare sector are likely to be positive over the long term.
“Factors such as an increasing ageing population, rising affluence, prevalence of chronic diseases, outsourcing of public healthcare and growing adoption of private medical insurance will fuel industry growth,” it said.
