IHH Healthcare posts 74% jump in Q4 net profit on exceptional gains

MAINBOARD-LISTED IHH Healthcare Berhad, the world's second-largest listed private healthcare provider based on market capitalisation, on Thursday posted a 74 per cent jump in net profit for the fourth quarter of 2015 to RM415.8 million (S$138.3 million), as a result of exceptional gains.

These gains include revaluation gain of RM49.2 million on investment properties, investment tax allowance granted of RM93.1 million and exchange gain on non-Turkish Lira denominated loans of RM121.3 million.

Excluding the exceptional items, profit after tax and minority interests (Patmi) for the quarter was down 11 per cent year on year to RM214.6 million.

Revenue for the three months ended Dec 31, 2015, grew 18 per cent to RM2.3 billion, driven by sustained organic growth at existing hospitals and ramp up of its newer hospitals.

These include the Acibadem Atakent Hospital and Acibadem Taksim Hospital in Turkey, as well as Pantai Hospital Manjung, Gleneagles Medini Hospital and Gleneagles Kota Kinabalu Hospital in Malaysia.

The consolidation of newly acquired Continental and Global Hospitals in India also contributed RM44.4 million to the group's Q4 revenue.

For the full year, net profit went up 24 per cent to RM933.9 million, while revenue grew 15 per cent to RM8.5 billion. Excluding exceptional gains, Patmi in 2015 grew 15 per cent year on year to RM899.2 million.

The group has declared a first and final dividend of 3 sen per share for the full year.

As at end December 2015, the group has RM2 billion in cash and cash equivalents.

Net gearing increased to a still-healthy and manageable 0.19 times from 0.08 times as end December 2014, on planned capital expenditure and allocation of cash into money market funds and fixed deposit.

"IHH expects to face continued headwinds from the slowing economies and fluctuation of regional currencies in the countries it operates in. However, we are confident that the robust demand for quality private healthcare services in the region, especially in India and China, continues to present growth opportunities for IHH," the group said.