KPJ’s Revenue Set To Improve With New Hospitals

By CodeBlue |

KPJ is scheduled to open three hospitals this year in Johor Baru, Kuching, and Miri.

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KUALA LUMPUR, June 7 — KPJ Healthcare Bhd is expected to see better earnings from opening three hospitals and steady demand for private health care.

StarBiz reported that the government-linked company (GLC) was scheduled to open three hospitals this year — KPJ Bandar Dato’ Onn in Johor Baru, Kuching and Miri.

BIMB Securities Research also projected increased revenue from KPJ’s mature hospitals amid an ageing population.

“However, we remain cautious over potential earnings dilution from gestation period of new hospitals,” the research house was quoted saying.

AmInvestment Bank Research reportedly said that KPJ’s first quarter core net profit of RM40.3 million was below expectations, making up 20.8 per cent of its full-year forecast.

“KPJ’s revenue from the Malaysian segment expanded 5.2 per cent to RM839.3mil on the back of increased patient visits and surgeries in KPJ Rawang, KPJ Pasir Gudang and KPJ Johor and the newly opened hospitals.”

CGSCIMB Research reportedly said KPJ’s start-up losses with the new hospitals would be offset by patient growth and timely openings of the facilities.

“We reckon that staggered bed openings will help to contain losses and a higher-than-expected patient volume will quicken the hospitals’ turnaround time.

“Separately, revenue should grow on the back of new capacity expansions and ramp-up of operations at existing hospitals. We expect patient growth to continue,” it said.

KPJ is the health care arm of Johor state-owned conglomerate Johor Corporation.

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