PETALING JAYA: The private healthcare sector is expected to maintain its growth trajectory, supported by rising non-communicable diseases, an ageing population and greater health awareness, according to CIMB Research.
The research house maintained its “overweight” stance on the sector following the second quarter of financial year 2026 (2Q26) results season, with private hospitals recording growth driven by an improved case mix and stronger patient footfall.
“Private hospitals’ 2Q26 results broadly met our expectations, with growth supported by a better case mix and organic growth in patient footfall,” CIMB Research said.
The private hospital operators under its coverage recorded core net profit growth of 18% year-on-year (y-o-y) in 2026, with higher-acuity patients lifting average revenue intensity per inpatient.
For 2Q26, IHH Healthcare Bhd
saw average revenue intensity per inpatient rise 16% y-o-y, while Sunway Healthcare Holdings Bhd (SunMed) recorded an 8% increase.
Additionally, inpatient admissions also strengthened, with SunMed registering 19% y-o-y growth, partly driven by its brownfield expansion, while IHH posted 3% growth.
The research house noted that hospital operators are increasingly focusing on quality and complexity of care rather than capacity utilisation alone, with investments centred on Centres of Excellence, specialised care, daycare services and ambulatory care centres.
IHH is strengthening its hub-and-spoke model by concentrating complex specialities across selected hospitals, while SunMed is benefiting from the ramp-up of newer facilities such as Sunway Medical Centre Damansara and Sunway Medical Centre Ipoh, alongside further brownfield bed expansion.
Furthermore, CIMB Research said it now prefers IHH, citing stronger earnings visibility.
It has a “buy” call on IHH with a target price of RM10.30, while SunMed is rated as a “hold” with a RM2.10 target price.
