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Posts tagged ‘KPJ Healthcare’

KPJ Healthcare: Acquires remaining 49% stake in SMC Healthcare

In an announcement to Bursa Malaysia, KPJ Healthcare (KPJ MK, Hold, TP: RM4.96) is acquiring the remaining balance 49% stake in SMC Healthcare Sdn Bhd (SMCH) for RM54.8m. SMC Healthcare Sdn Bhd operates Sabah Medical Centre. The proposed acquisition is expected to be completed by 3Q 2012. (Bursa Malaysia)

Comment: This latest acquisition is in line with KPJ’s plans to develop and expand the healthcare business. We understand that SMCH registered a net profit of RM3m in FY11 or 2% of KPJ’s FY12 net profit. The acquisition PER works out to 37x FY11 SMCH earnings. Sabah Medical Centre is currently undergoing construction to replace the old building and is expected to start commercial operations by end 4Q2012. We maintain our FY12 and FY13 earnings forecasts. This acquisition is only a small dent to KPJ’s net gearing of 0.2x as at 31 Mar 2012. (Raymond Choo) 
Source: ECM Newz Bits 02 August 2012

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KPJ Healthcare arm buys assets for RM14.2m

KPJ Healthcare Bhd’s wholly-owned
subsidiary, Pharmaserv Alliances Sdn Bhd, has entered into sale and purchase
agreement with Lewre International Sdn Bhd to acquire a property in Petaling for
RM14.2 million.

In a filing to Bursa Malaysia today, KPJ said the property, a three-storey
office building together with a single-storey warehouse, is strategic to the
group in its plans to develop and expand the pharmaceutical business.

While continuing to focus on its core businesses in the healthcare industry,
KPJ said it will also strive to grow its pharmaceutical division which can
provide recurring income and positive cash flow to the group in the future.

The proposed acquisition, expected to complete in the third quarter 2012, is
expected to contribute positively to the group’s revenue and earnings in the
future.

Read more: BusinessTimes

Healthy revenue outlook for KPJ Healthcare

KPJ Healthcare also allocates between RM100 million and RM200 million to expand its existing hospitals.

HEALTHCARE group KPJ Healthcare Bhd hopes to reach beyond RM2 billion in revenue this year based on its encouraging performance during the last quarter 2011.

Besides looking at acquisition opportunities, the group is keen to grow its medical tourism which currently commands about 5 per cent of its revenue.

“Eight of our hospitals are already earning more than RM110 million revenue a year with an occupancy rate of between 66-75 per cent,” said managing director Datin Paduka Siti Sa’diah Sheikh Bakir during an interview recently.

The company is the country’s largest private medical entity with 20 hospitals under its arm.

“Our mergers and acquisition initiative depends largely on the opportunities that arise. We look at hospitals that are promising but with lack of fund to expand,” she said.

Recently, KPJ Healthcare teamed up with Naim Land Sdn Bhd to build and operate a hospital in Miri.

The joint venture was in line with the group and its subsidiaries’ objective to increase its network of hospitals to locations where private healthcare is in demand, enlarge the customer base as well as other areas of healthcare services.

KPJ Healthcare hopes medical tourism contribution will grow between 15 per cent and 25 per cent in another three to four years.

“While there are many hospitals here keen to tap into this sector, we are optimistic that there are plenty of room to grow. Our total market share in this segment right now is about 10 per cent,” she said.

Many foreigners are choosing Malaysia for medical treatment due to its affordability and quality.

Indonesia and the Middle East remains as its largest market for medical tourism and the group plans to set up more representatives in these countries.

Last month, KPJ Healthcare acquired 80 per cent stake in Indonesia-based PT Khidmat Perawatan Jasa Medika (PT KPJ Medika) for RM15.84 million. KPJ Healthcare has in fact been managing the hospital in the last 15 years.

The acquisition was in line with the company’s strategy to expand its hospital network in Indonesia in order to tap the strong potential demand for private healthcare there.

KPJ Healthcare has also been looking at means to diversify its business activities. Sa’diah said the company is currently talking to relevant parties to set up a retirement village in Kuala Lumpur and Johor, similar to the one it currently manages in Australia.

In 2010, the group made its maiden foray acquiring a controlling stake in Jeta Gardens, a retirement village in Queensland Australia which contributes less than 5 per cent to its revenue at the moment.

“Caring for the aged is a new sector for us but we see a huge potential to grow looking at the demand for this segment,” she said.

Besides healthcare, the company also operates KPJ International University College of Nursing and Health Sciences.

For the financial year ended December 31, 2011, its net profit grew 10.6 per cent to RM131.7 million compared with RM119 million before. Revenue was 14.5 per cent higher to RM1.89 billion against RM1.65 billion in 2010.

Read more: BusinessTimes

CIMB Research has technical buy on KPJ Healthcare at RM5.12

KUALA LUMPUR (March 19): CIMB Equities Research has a technical buy on KPJ Healthcare at RM5.12 at which it is trading at a price-to-book value of 3.4 times.

It said on Monday that the uptrend from its September 2011 low does not look complete.

“Recent consolidation stopped at the 23.8% FR level and the bulls have since taken the lead,” it said.

CIMB Research said that on Friday, the stock hit a new all time high of RM5.15, reflecting the bullishness of the stock.

“Indicators are showing sign of improvement. MACD signal line has staged a positive crossover while RSI has also hooked upward. Hence, we think the uptrend could last a while longer,” it said.

The research house said that aggressive traders may take some position here. The next upleg will likely lift prices towards RM5.40 and RM5.80.

However, always place a stop at below RM5.04 to RM5.00 in case the trend reverses.

Read More: The Edge

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