IHH Healthcare : Q0F 0%on Thursday (Nov 30) reported earnings of RM532.1 million (S$152.7 million) for the third fiscal quarter ended September, more than double the earnings of RM251.8 million in the corresponding year-ago period. 

On a per-share basis, this translated to earnings of 6.04 sen, versus 2.78 sen in the previous year. 

For the nine-month period, IHH’s net profit was up 64 per cent year on year to RM2.2 billion, against RM1.4 billion. 

The stronger Q3 bottom line figures came in part on the back of a 27 per cent increase in revenue to RM5.8 billion from RM4.6 billion.

The company said that it saw more patients, and benefited from higher revenue intensity across all its markets.

There was also an improved case mix, the group added. 

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The higher top line figures, for both the quarter under review and nine-month period, were due to a “strong recovery” from the company’s core non-Covid-19 revenues, as both local and foreign patients returned to seek treatment at the company’s hospitals. 

The commencement of operations at Atasehir Hospital in September last year, the continuous ramp-up of operations at GHK Hospital, as well as two acquisitions in August 2022 and February this year also contributed to the increase. 

Segmentally, IHH’s hospital and healthcare revenue rose 22 per cent in Q3 to RM5.2 billion due partly to the post-pandemic recovery and a case mix of more acute patients and price adjustments to counter inflation. 

In Singapore, hospital inpatient admissions inched up 1 per cent to 15,503 in Q3 while revenue per inpatient admission increased 17 per cent to RM60,004. 

Revenue from the labs segment, meanwhile, rose 9 per cent to RM436.8 million. 

Looking ahead, IHH pointed out that its organic growth trajectory is set to be significantly enhanced by an increase in bed capacity of more than 30 per cent, or close to 4,000 beds, over the next five years in order to meet growing healthcare needs, as well as local and regional demand. 

This includes adding new beds across Malaysia, India, Turkiye and Europe, while exploring strategic opportunities across Asia and Europe, the company said. 

Besides capacity expansion, the group said that it is also expanding its portfolio across the healthcare continuum, from ambulatory and primary care to tertiary hospital services. 

It is also eyeing new growth engines such as its laboratory and diagnostic business, and investing in digital health services and innovative technologies. 

However, the company warned that it expects cost pressures from elevated inflation and rising interest rates. 

“The group continually reviews and strategically recalibrates its asset portfolio. It will also take steps to turn around the performance of underperforming assets to enable these assets to reach its full potential,” IHH added. 

Overall, the company noted that it expects continued revenue growth and double-digit return on equity, while maintaining prudent capital management and mitigating inflationary and interest rates pressures.

Shares of IHH gained 0.6 per cent, or S$0.01, on Thursday to close at S$1.68.