KPJ’s 4Q earnings lifted by growth in hospital operations

By NUR HANANI AZMAN / Pic By FACEBOOK

KPJ Healthcare Bhd said an increase in the number of patients and medical procedures helped the healthcare service provider record a 58% year-on-year (YoY) jump in earnings to RM84 million for the fourth quarter ended Dec 31, 2019 (4Q19).

Revenue for the period grew 8% YoY to RM944 million on the back of stronger growth in its hospital operations.

In a filing to the exchange yesterday, KPJ stated the growth in its financials was mainly derived from its existing and new hospitals such as KPJ Rawang, KPJ Pasir Gudang, KPJ Tawakkal KL, KPJ Batu Pahat, KPJ Perlis and KPJ Bandar Dato’ Onn.

“This is evidenced by the increase in the number of patients and procedures performed in particular, surgeries. The opening of the new block in KPJ Seremban has resulted in an increased number of beds and consequently increased the revenue,” said KPJ president and MD Datuk Amiruddin Abdul Satar said in a statement yesterday.

KPJ Perdana in Kota Baru, Kelantan, and KPJ Pasir Gudang, Johor, both achieved more than RM100 million revenue for the first time.

KPJ was also able to meet its goal of opening three new hospitals in 2019, namely KPJ Bandar Dato’ Onn, KPJ Batu Pahat and KPJ Miri, he added.

For the full year (FY19), KPJ’s revenue increased by 7.1% YoY to RM3.6 billion while earnings rose 18% YoY to RM211.4 million.

The healthcare group declared a single-tier interim dividend of 0.5 sen per share for FY19, with its ex-date on March 30, 2020, and payable on April 20, 2020.

In 2020, KPJ will relocate several hospitals from their original premises upon reaching maximum capacity to new hospital buildings with larger capacity, namely KPJ Kuching Specialist Hospital and KPJ Kluang Specialist Hospital.

Amiruddin said, apart from the group’s strong Malaysian operations, the Indonesian Rumah Sakit Media Bumi Serpong Damai in Jakarta was able to expand its business, primarily through aggressive marketing offering innovative packages, as well as the addition of more inpatient beds.

“The Group will also be exploring possible expansion of new markets like Vietnam, China and the Middle East, as part of the Group’s big push on medical tourism into Malaysia.

“With the added capacity of our network hospitals arising from recent greenfield and brownfield development, KPJ is bullish about its prospect of expanding its foreign patient segment,” he added.