KPJ Shares Rise 19 Sen At Mid-morning After Reporting Strong Results
KUALA LUMPUR, March 3 (Bernama) -- KPJ Healthcare Bhd shares were up at mid-morning today after the company reported a stellar performance for the financial year ended Dec 31, 2024 (FY2024).
As of 11 am, its share price rose 19 sen to RM2.56 with 6.80 million shares traded.
In a Bursa Malaysia filing last Friday, KPJ announced that its net profit jumped to RM353.82 million in the FY2024 from RM263.41 million in the preceding year.
Revenue also rose to RM3.92 billion from RM3.42 billion previously, largely contributed by the higher number of patients visits and increase in bed capacity last year.
In a research note today, CIMB Securities Sdn Bhd projected KPJ’s core net profit increasing 12.9 per cent year-on-year (y-o-y) for 2025, driven by bed capacity expansion, increase in patient volumes, and lower interest costs.
“We raise our FY2025–FY2026 forecast earnings per share (EPS) projections by 8.0-11.9 per cent to account for higher patient volumes and higher operational margins.
“Accordingly, we lift our target price (TP) to RM2.80 per share and maintain our ‘buy’ rating,” it said.
Meanwhile, Hong Leong Investment Bank Bhd anticipated an 11.8 per cent y-o-y growth in core profit after tax and non-controlling interests for FY2025, driven primarily by a 7.5 per cent increase in revenue and further expansion in gross profit margin.
It said that the gross profit margin expansion will be supported by the centralisation of procurement for inventories and consumables, the gradual development of centres of excellence, as well as the continued turnaround of five hospitals – KPJ Bandar Dato' Onn, KPJ Perlis, KPJ Miri, KPJ Batu Pahat, and Damansara Specialist Hospital 2.
“Besides, KPJ will benefit from the ongoing initial public offering (IPO)-led rerating amid upcoming hospital IPOs in end-2025 to 2026.
“We raised our FY2025-2026 forecasts by +6.8 per cent/+12.5 per cent to mainly reflect higher gross profit margin assumptions. All in, we reiterate our ‘buy’ rating on KPJ with a higher TP of RM2.66 per share,” it added.
-- BERNAMA