,Positioned as KPJ’s flagship and premium health-tourism hospital, DSH2 is expected to be earnings-accretive and contribute to the long-term earnings growth of the healthcare services provider.足球分析专家（www.99cx.vip）是一个开放皇冠体育网址代理APP下载、皇冠体育网址会员APP下载、皇冠体育网址线路APP下载、皇冠体育网址登录APP下载的官方平台。足球分析专家上足球分析专家数据更新最快。足球分析专家开放皇冠官方会员注册、皇冠官方代理开户等业务。
PETALING JAYA: KPJ Healthcare Bhd’s newly opened luxurious hospital, Damansara Specialist Hospital 2 (DSH2), will likely turn profitable in two years, driven by the expected rise in health tourists to Malaysia.
Positioned as KPJ’s flagship and premium health-tourism hospital, DSH2 is expected to be earnings-accretive and contribute to the long-term earnings growth of the healthcare services provider.
Following a recent site visit, CGS-CIMB Research noted that DSH2 had several key competitive advantages that could boost income.
They include the offering of comprehensive multi-disciplinary services focusing on neuroscience, orthopaedics, cardiac and interventional/minimally invasive surgeries, having 40 resident consultant specialists and 100 sessional specialists, strategic location at Bukit Lanjan and state-of-the-art medical/surgical equipment.
CGS-CIMB Research reiterated its “add” call on KPJ, maintaining its target price for the counter at RM1.18 based on 32 times the estimated earnings for financial year ending Dec 31, 2024 (FY24).
The brokerage said its forecasts had taken into account DSH2’s gestation losses in FY22-FY24, but had not imputed KPJ Kuala Selangor’s capital expenditure (capex), pending clarity from management.
“We gather that the capital expex for fitting out beds (at DSH2) is minimal,” CGS-CIMB Research said.
It pointed out that DSH2 had a capacity of 60 licensed beds and it would have 123 beds by end-2023.
KPJ may open more capacity for a total of 205 and 265 beds by end-FY24 and FY25, respectively.
“KPJ is positioning DSH2 as its flagship and premium health tourism hospital in Malaysia by securing additional global insurance panelships and setting up cashless payment facilities,” CGS-CIMB Research said.
DSH2’s bed occupancy rates were currently less than 20%, which was fairly healthy for a new hospital, with foreign patients forming around 30% of its base.
KPJ expected swift earnings before interest, tax, depreciation and amortisation (ebitda) breakeven by end-FY23F or early-FY24 and profit after tax breakeven by end-FY25, led by higher local and foreign patient volumes, coupled with better revenue intensity.
According to CGS-CIMB Research, DSH2 might secure more local insurance panelships, and this could attract more local patients.
Separately, the removal of border closures and easing of travel standard operating procedures post-pandemic should help boost foreign patient volumes.
It noted that DSH2 charged a premium of 20% to 25% on foreign patients against the fees charged on local patients.