IHH Healthcare's net profit jumped 17% to RM133.5m

But cost pressures still linger.

According to DBS, IHH Healthcare's 1Q core net profit (excl. exceptional items) of RM133.5m was 17% higher than a year earlier, accounting for c.18% of DBS' FY13F earnings. 

DBS also noted that revenue and EBITDA grew by 29% and 24% to RM1.6bn and RM347.6m respectively, partly driven by a full quarter of Acibadem’s consolidation in 1Q13, compared to only two months a year earlier. In addition, the Group also saw revenue growth from existing operations and contribution from new hospitals.

Here's more:

Margins weakened marginally on start up losses, operating costs. EBITDA margins (excl PREIT) weakened marginally by 0.8ppts to 21.7% (1Q12: 22.5%) as it saw continued losses from its new hospitals.

It also faced cost pressures from personnel and operating lease expenses, particularly its Singapore hospitals. This is within our expectations. We estimate FY13F EBITDA margin to be 20.8%.

Losses narrowing from Novena hospital. Novena Hospital posted a smaller EBITDA loss of RM3m (from -RM15.6m/ -RM16.4m in 1Q12/ 4Q12). This was achieved on the back of higher revenue of RM37.2m and streamlining of its operating costs. Hence, it seems like management’s target of achieving EBITDA breakeven by 1H13 is within reach.