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IHH Healthcare - Maybank Kim Eng 2021-11-30: Operationally Resilient

IHH HEALTHCARE BERHAD (SGX:Q0F) | SGinvestors.io IHH HEALTHCARE BERHAD (SGX:Q0F)

IHH Healthcare - Operationally Resilient


Slightly ahead of expectations

  • IHH Healthcare (SGX:Q0F)’s 3Q21 core earnings were up 48% y-o-y on stronger operational metrics across its operations. 9M earnings came in slightly ahead of expectations, making up 79% and 81% of ours and consensus’ full-year forecast, as the sequential moderation in 3Q21 revenue intensity and COVID-19 related revenues were not as severe as we initially expected.
  • We raise FY21-23E earnings forecast for IHH Healthcare by +3% to account for this better-than-expected operational performances.



Stronger operational metrics

  • IHH Healthcare's 3Q21 revenue grew by 26% y-o-y on the back of higher revenue intensity in Malaysia (+25%) and Turkey & EU (+22%), with the latter also seeing strong inpatient admissions of 12%, together with India (+29%). This has more than offset lower inpatient admissions in Malaysia (-11%) and Singapore (- 2%). COVID-19 related services also generated higher revenues in Malaysia and Singapore at 18-29% of total revenue (vs 12-24% in 2Q21) as the COVID-19 situation subsided much later vs Turkey & EU and India, both of which saw lower COVID-19 related revenues.
  • IHH Healthcare however incurred higher costs in 3Q21 linked to higher manpower expense and lower government grants.


Likely weaker 4Q21 momentum

  • We expect sequentially vaccination activities.


Marginally raise earnings






Shafiq Kadir Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2021-11-30
SGX Stock Analyst Report BUY MAINTAIN BUY 2.43 UP 2.020



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