IHH Healthcare's core profit climbed 20% in Q2 on back of higher patient volumes

Two new hospitals also fuelled the growth.

Poor health is good for business for IHH Healthcare. The SGX-listed healthcare firm delivered a core net profit of $75.8m (RM 191.8m), a 20% year-on-year increase coupled with 16% growth in earnings.

DBS notes that including forex gains on net borrowings and other exceptional items, net profit grew 33% year-on-year to $82.68 m (RM209.1m)

“Topline growth was driven by increased patient volume and revenue intensity, coupled with contribution from opening of 2 new hospitals – Pantai Manjung and Acibadem Atakent. 1H14 net profit accounts for 47% of our FY14F estimates,” noted DBS.

Here’s more from DBS:

EBITDA grew 16% y-o-y to RM434.9m, largely from Parkway Pantai’s robust contribution arising from ramp up of Novena hospital, higher revenue intensities and price increases. Revenue from
Novena hospital jumped 87% to RM81m, while EBITDA rose substantially to RM18.2m compared to RM2.6m in 2Q13.

Management indicated that inpatient admissions continue to grow within Novena, and the recent opening of an obstetrician & gynecological ward contributed partially to it. Acibadem’s revenue and EBITDA both grew by a smaller 4% y-o-y due to translation effects of a weaker TRY. In local constant currency terms, revenue and EBITDA would have registered a growth of 12% and 13%, respectively.