KUALA LUMPUR (March 26): Sunway Healthcare Holdings Bhd (KL:SUNMED) founder and chairman Tan Sri Dr Jeffrey Cheah remains bullish on the newly listed entity’s ability to deliver on its targets, underpinned by its “build-from-scratch” organic expansion model.
Speaking to reporters on Thursday, Cheah addressed questions about the company’s skyrocketing valuation following its Main Market debut a little over a week ago. The stock has climbed nearly 60% from its March 18 listing, rising 84 sen from its initial public offering price of RM1.45 to close at RM2.29 on Thursday.
The price surge has pushed the healthcare group’s valuation to more than 104 times its trailing price-earnings ratio or PER, based on its net profit of RM252.2 million for the financial year ended Dec 31, 2025 (FY2025). This means investors are paying over RM100 for every RM1 of profit the company makes — a sign of immense market confidence in its future growth.
Cheah attributed the premium valuation to the group’s unique internal capabilities and execution strategy. “The big difference is that we build every hospital ourselves, right from the start. We do everything ourselves,” he said.
With a market capitalisation of RM26.34 billion, the group is now the 18th largest listed company on Bursa Malaysia. It officially joined the FBM KLCI on Wednesday.
“Even without the high share price, our people are always on board to deliver what we have promised,” he said, adding that the team is confident of meeting — “if not bettering” — its commitments to shareholders.
Sunway Healthcare’s performance so far is also due to its strategy of building hospitals organically rather than pursuing acquisitions at elevated valuations, Cheah said.
The group can develop hospital assets at about RM1.5 million per bed — significantly lower than the roughly RM6 million per bed seen in recent acquisition opportunities. So it’s a “no-brainer” why the group has largely stayed away from bidding for existing hospital assets, he said.
The focus on designing and operating its own facilities also allows for tighter control over functionality, patient experience and clinical outcomes, he added.
According to Cheah, the group’s flagship Sunway Medical Centre has now evolved into a quaternary hospital — a level above tertiary care, making it the highest tier of specialised healthcare — capable of handling complex cases referred by other institutions.
The group has also invested heavily in advanced medical equipment and talent, attracting Malaysian specialists from leading global institutions such as the Mayo Clinic and the National University of Singapore.
“These are young, dynamic and top surgeons,” he said, adding that Sunway’s integrated healthcare ecosystem has become a strong draw for returning specialists.
Noting the elevated valuation is a reflection of strong investor optimism, Cheah stressed that the group remains focused on its fundamentals — including cost-efficient expansion, clinical quality and talent development — noting these are central to sustaining its long-term growth.
WATCH: Jeffrey Cheah unfazed by Sunway Healthcare’s sky-high valuation