KUALA LUMPUR (Aug 13): KPJ Healthcare Bhd (KL:KPJ) may report a stronger second quarter thanks to improving patient volume and revenue intensity, alongside margin recovery, said an analyst.
Net profit for the three months ended June 30, 2026 is estimated at RM92 million, a rise of 16% year-on-year and 28% quarter-on-quarter, according to RHB Research in a note. The first-half usually accounts for a little over one-third of KPJ’s full-year earnings, the research house noted.
“The sequential margin improvement should be supported by higher bed occupancy following festive season softness, partly offset by continued investments in IT and digital infrastructure,” the house said.
Investors have been buying into KPJ, which operates 30 hospitals with over 3,900 beds across the nation, since the start of the year as earnings expanded with higher revenue per patient as well as an increase in the number of patients.
KPJ, however, has lost nearly 13% from its recent peak that valued the stock at nearly 17 times its enterprise value.
“The pullback likely reflects the broader normalisation of the healthcare sector’s valuation” and sentiment was also weighed down by the progressive implementation of Malaysia’s healthcare and insurance reforms, said RHB Research.
The stock now trades at below 15 times its enterprise multiple, “which we believe offers a more attractive entry point”, the research house said and maintained KPJ on a ‘buy’ call with a target price of RM3.77.
The 18 research houses tracked by Bloomberg also held a mostly bullish sentiment, with 11 ‘buy’, seven ‘hold’ and no ‘sell’ calls. The average target price stands at RM3.65.