IHH Healthcare swings back to profit in H1, rebounds beyond pre-Covid-19 levels

HOSPITAL operator IHH Healthcare Berhad has posted a net profit of RM858.9 million (S$276.9 million) for the first half of 2021, swinging from a loss of RM440.4 million for the corresponding period last year.

For its second quarter ended June 30, net profit stood at RM483.3 million, compared with a loss of RM120.6 million in the year-ago quarter.

IHH's revenue for H1 rose 34 per cent to RM8.2 billion from the low base of FY2020, when lockdowns across the region hit its performance, the mainboard-listed company said.

For Q2 alone, its revenue was RM4.27 million, compared with RM2.57 million in Q2 last year.

For the half year ended June 30, IHH reported an earnings per share of 9.29 sen, reversing from a loss per share of 5.54 sen.

No dividends were declared for the financial period ended June 30.

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IHH managing director and chief executive Kelvin Loh said the group's performance rebounded beyond pre-Covid-19 levels due to three factors: "Firstly, our relentless focus on delivering excellent care to patients has seen more return to our hospitals; secondly, our ability to provide Covid-19-related services in support of government healthcare efforts, especially by ramping up our laboratory and diagnostic services; and thirdly, the strong cost discipline we continue to maintain."

For example, the group supported governments in Covid-19 vaccination drives, which began in Q1 for its home markets of Malaysia, Singapore, Turkey and India.

He added that the group has locked in business continuity in Singapore by extending a long-term lease for three hospitals - Gleneagles Hospital Singapore, Mount Elizabeth Hospital (Orchard) and Parkway East Hospital - with PLife Reit. (see Amendment note)

This includes a S$150 million infrastructure upgrade provided by the landlord, which will further improve its services, said Dr Loh.

IHH shares closed S$1.88, up 2 cents or 1.08 per cent, before its announcement on Thursday.

Amendment note: An earlier version of this article stated that the three hospitals include Mount Elizabeth Novena Hospital. IHH Healthcare has clarified that it is in fact Parkway East Hospital.