IHH: Profit for Q3 rises 25.5% to RM147mil

IHH Healthcare Bhd’s net profit for the third quarter ended Sept 30 jumped 25.5% to RM146.91mil on the back of higher inpatient volumes, revenue intensity and contribution from new hospitals.

Revenue increased 6.71% to RM1.78bil. Earnings per share (EPS) improved to 1.8 sen from 1.44 sen previously.
For the nine-month period, net profit was up 28.4% to RM515.06mil on the back of an 8.6% jump in revenue to RM5.41bil. EPS increased to 6.31 sen from 4.95 sen.
The group maintained a strong balance sheet, with net gearing at 0.10 times and cash balance of RM2.15bil as at Sept 30.
Parkway Pantai, the group’s largest operating subsidiary, reported a 10% growth in revenue to RM1.08bil and an 11% increase in operating profit to RM269.3mil for the third quarter, primarily due to the continued ramp up of Mount Elizabeth Novena Hospital in Singapore. This was despite the raising of nurses’ salaries, start-up losses recorded for the newly opened Pantai Hospital Manjung and pre-operating expenses for Gleneagles Hong Kong Hospital.
As for its Turkish healthcare provider, Acibadem Holdings, revenue increased 1% to RM616.6mil while operating profit fell 2% to RM89.2mil. Top-line growth was driven by strong performance at its existing hospitals, the continued ramp up of Acibadem Ankara Hospital and Acibadem Bodrum Hospital, as well as revenue contribution from the newly-opened Acibadem Atakent Hospital.
IHH expects higher staff costs and other inflationary pressures to affect the group for the rest of the year, but will take mitigating action through price adjustments while improving operating leverage.
“The group’s diverse geographical footprint also makes it susceptible to currency volatility. As such, IHH continues to monitor and minimise currency risks proactively.
Barring unforeseen circumstances, the group is confident about achieving earnings growth for the year ahead,” it said. 

IHH Managing Director and Chief Executive Officer Dr Tan See Leng said the better performance reflected the robustness of the strategy to expand in high growth markets, while optimising existing operations and bringing new hospitals onstream quickly. "We remain in a strong financial position to drive our phased pipeline of projects going forward," he said.

On prospects, Chairman Tan Sri Dr Abu Bakar Suleiman said the group remained positive on the attractive growth prospects of the industry, and its ability in creating value for shareholders.
/theSTAR/Bernam 26-11-2014

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