Sunway Healthcare Holdings Berhad is expected to deliver steady earnings growth over the next three years, supported by hospital expansions, rising medical tourism and a growing ageing population, according to Malacca Securities.
In an IPO note, the research house said it projects the integrated healthcare provider to record a three-year earnings compound annual growth rate (CAGR) of 12.6%, with core profit after tax and minority interest (PATMI) expected to reach between RM235.4 million and RM368.1 million during the period.
Sunway Healthcare operates a network of quaternary and tertiary hospitals, alongside specialised outpatient services delivered through ambulatory care centres. The group also provides supportive healthcare services including home healthcare, traditional Chinese medicine (TCM) and senior living solutions.
Malacca Securities said the company’s growth outlook will be supported by brownfield expansions at several existing hospitals, which are expected to increase capacity and patient throughput.
The research house also expects medical tourism to remain a key growth driver as Malaysia continues to attract international patients seeking quality healthcare services.
Rising patient volumes from Malaysia’s ageing population are also expected to support demand for healthcare services over the medium term.
Malacca Securities assigned a fair value of RM1.51 per share for Sunway Healthcare, implying a potential upside of about 4.1% from its initial public offering price of RM1.45.
The valuation is based on an enterprise value-to-EBITDA multiple of 25.5 times, pegged to the group’s mid-financial year 2027 forecast EBITDA of RM673.3 million.
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