HMI reports jump in Q2 profit, declares dividend

PRIVATE healthcare provider Health Management International's (HMI) second-quarter net profit nearly tripled from RM5.33 million (S$1.79 million) to RM15.72 million, on the back of an improved performance as well as its increased stake in its two hospitals.

HMI now owns 100 per cent of both Makhota Medical Centre and Regency Specialist Hospital following a consolidation exercise that took place in March last year.

Revenue increased 8.5 per cent year-on-year to RM115.99 million, due to rising patient loads and average bill sizes at the two hospitals.

In addition, its education business chalked up a RM2.9 million bump in revenue as a result of higher student headcount.

Earnings per share for the quarter under review climbed to RM1.9 cents per share from RM0.91 cent a year ago.

The company, which declared an interim dividend of RM1 cent per share "in light of its financial performance and to reward shareholders for their support", has also adopted a new dividend policy to pay out dividends of at least 20 per cent of the group's core operating earnings for any financial year. The interim dividend is payable on March 2.

Meanwhile, for the six-month period, net profit rose from RM11.5 million to RM29.51 million, while revenue increased 8 per cent to RM233.04 million.

Shares of HMI closed at S$0.63 on Monday, up half a cent.