IHH Healthcare recovered in 2Q on increased number of patients


IHH Healthcare Bhd earnings rebounded in its second-quarter ended June 30, 2021 (2Q21), with a net profit of RM483.31 million — compared to a net loss of RM120.64 in the same period last year — as more patients sought Covid-19 support services.

Revenue grew 66.5% year-on-year (YoY) to RM4.27 billion in the period driven by a higher number of patients, especially in markets where movement restrictions were eased, according to the healthcare service provider’s exchange filing yesterday.

Basic earnings per share was 5.26 sen. The group has not declared any dividend for the quarter under review.

IHH noted its Ebitda increased to RM1.1 billion, driven by higher revenue, but was offset by higher staff costs and other operating expenses and lower government grant income.

The increase in expenses was mainly due to a low base last year with lower doctors’ salaries for certain groups of doctors whose salaries vary with revenue or services rendered.

“Our performance rebounded beyond pre-Covid levels on three key drivers: Firstly, our relentless focus on delivering excellent care for patients has seen more return to our hospitals; secondly, our ability to provide Covid-related services in support of government healthcare efforts, especially by ramping up our laboratory and diagnostic services; and thirdly, the strong cost discipline we continue to maintain,” IHH MD and CEO Dr Kelvin Loh (picture) stated.

In Singapore, the hospital operator extended a long-term lease for three hospitals, which includes a S$150 million (RM465.33 million) infrastructure upgrade provided by the landlord.

The group’s Gleneagles Hong Kong Hospital had achieved Ebitda breakeven in May 2021.

The increase in net income was also attributed to a re-measurement to the fair value of an interest in DDRC SRL Diagnostics Pte Ltd in India and disposal gains from Apollo Gleneagles Hospitals, offset by a substantive write down of Parkway Yangon Hospital in Myanmar and Gleneagles Chengdu Hospital in China.

Dr Loh said the group is confident of its longer-term trajectory amid the ever-evolving pandemic situation.

“Given the Delta variant causing a resurgence worldwide, the situation remains fluid, but our priority remains the same — we will provide the fullest extent of Covid-19 support for governments so that patients continue to get the best of medical care — while ensuring the safety and wellbeing of our people,” he said.

IHH continues to deepen its metro cluster strategy to drive efficient growth by constantly reviewing and calibrating its asset portfolio.

IHH shares finished 0.17% higher to RM5.84, valuing the group RM51.27 billion.