KUALA LUMPUR (March 16): Sunway Healthcare Bhd, which is set to debut on the Main Market of Bursa Malaysia on Wednesday (March 18), posted a 43.3% jump in net profit for the fourth quarter, on higher patient volumes as well as favourable tax treatment.

Net profit for the three months ended Dec 31, 2025 (4QFY2025) climbed to RM112.39 million from RM78.4 million in 4QFY2024, while revenue rose 21.3% to RM614.64 million from RM506.74 million, according to a bourse filing on Monday.

Patient volumes were helped by new hospitals, namely Sunway Medical Centre (SMC) Damansara, which commenced operations in December 2024, and SMC Ipoh, which began operations in April 2025. Overall bed occupancy rate, however, dipped to 70% from 77% in 4QFY2024 due to the increase in bed capacity, which temporarily diluted occupancy levels.

Earnings were further helped by a tax income of RM19.92 million, as opposed to a tax expense of RM11.95 million in 4QFY2024. It also recognised a deferred tax asset of RM43.34 million as compared to a deferred tax liability of RM3 million previously.

For the full financial year ended Dec 31, 2025 (FY2025), net profit slipped 2.1% to RM252.21 million from RM257.5 million in FY2024, despite an 18.8% rise in revenue to RM2.2 billion. This came as administrative expenses rose 18% to RM220.76 million and other expenses climbed 12% to RM56.41 million.

‘Iran war may disrupt global supply chains, raise costs’

Looking ahead, Sunway Healthcare is positive on its outlook, citing steady domestic demand for private healthcare and industry clarity following the Ministry of Health’s deferment of the diagnosis-related group system to 2027.

Growth visibility is further supported by brownfield expansions and strategic asset acquisitions, the group said, which the group noted are expected to increase the group’s bed capacity to about 2,300 beds by end-2026 as compared to 1,982 in January 2026.

However, it flagged that the recent Iranian war might indirectly affect Malaysia’s healthcare sector by disrupting global supply chains for medical-related supplies and raising costs due to geopolitical uncertainty and higher oil prices.

“Despite these challenges, Malaysia’s diverse supply network and strong healthcare system are expected to maintain stable service delivery,” it added.

Sunway Healthcare, which set its initial public offering (IPO) price at RM1.45 per share, is looking to raise RM2.86 billion from its listing exercise. Of the RM834 million that will accrue directly to the company, funds will be used to fund the expansion of its existing hospital and redemption of sukuk wakalah.