KPJ Healthcare posts stronger metrics due to swifter bed capacity expansion

Its risk is that delayed construction affects capacity expansion for KPJ Damansara 2

Malaysian-based hospital, KPJ Healthcare, recently posted an increase in revenue, about 15.9% yoy to RM925.4m in 3Q23 but it may face some downside risks in the future, said CGS-CIMB.

In a report, CGS-CIMB said it recorded a one-off gain of RM41.5 million in 3Q23 from the sale of its equity interests in PT Al-Aqar Bumi Serpong Damai (PTABSD) and PT KPJ Medica (KPJM) in Indonesia.

Some of KPJ's growth potential are divestments and bed expansion plans whilst downside risks include construction delays affecting capacity expansion and a longer gestation period for KPJ Damansara 2.

"We are keeping a lookout on capex guidance and expected number of bed expansion over the next few years as indication of KPJ’s capacity to grow," read the report.