PETALING JAYA: KPJ Healthcare Bhd
is expected to sustain its earnings momentum over the coming quarters, supported by higher-acuity treatments, digitalisation initiatives and improving contributions from its hospital network.
Research houses maintained a broadly positive outlook for the healthcare group following its first-quarter results.
CIMB Research said KPJ’s near-term growth would continue to be driven by its brownfield expansion strategy, alongside efforts to deepen clinical capabilities and improve operational integration across its healthcare ecosystem.
The research house noted that the group’s digital transformation agenda was gaining traction through the rollout of the KPJ Health System, introduced in 2024 as an integrated academic healthcare ecosystem combining clinical expertise with research and academic capabilities.
CIMB Research maintained its “buy” call on the stock while raising its sum-of-parts-based target price to RM4.09 from RM3.28 previously, after increasing its 2027 forecast enterprise value-to-earnings before interest, taxes, depreciation and amortisation multiple to 16 times from 13 times.
RHB Research, meanwhile, said it had trimmed its financial year 2026 to 2028 earnings forecasts by 1% following updates from the company’s annual report, although the group’s latest quarterly performance remained broadly in line with expectations.
The research firm added that management remained focused on increasing revenue intensity through more complex and higher-value sub-specialty cases, while KPJ’s secondary care hospitals could benefit from spillover demand arising from medical and health insurance and takaful coverage.
TA Research also expects profitability to strengthen in the coming quarters. It maintained its “hold” recommendation while raising its target price to RM3.62 from RM3.50.
An analyst told StarBiz that KPJ remained well-positioned to benefit from resilient domestic healthcare demand and the gradual recovery in medical tourism.
This is supported by its broad hospital network and ongoing service enhancements, he said.
“The group’s continued focus on operational efficiency should help sustain earnings growth despite a more challenging cost environment,” the analyst added.
