Home » Medical tourism a boon for KPJ Healthcare’s revenue

Medical tourism a boon for KPJ Healthcare’s revenue

PETALING JAYA: Considering the rise in medical tourism and the increasing number of successful hospitals in KPJ Healthcare Bhd’s portfolio, analysts are generally optimistic about the company’s earnings growth.

According to a report by TA Research, increased medical tourist arrivals—particularly from China and India—and partnerships with regional organizations in Indonesia are the main drivers of the anticipated rise in medical tourism.

According to our estimate, KPJ’s healthcare tourism revenue in the fiscal year 2024 (FY24) will rise by 68% to RM324 million. According to TA Research, KPJ Bandar Dato’ Onn, Johor Baru; KPJ Batu Pahat, Johor; and KPJ Perlis are expected to generate their first profits in FY24.

TA Research kept its target price (TP) of RM2 per share for KPJ and maintained its “hold” recommendation.

In agreement, MIDF Research pointed out that in addition to medical tourism, increased demand for services is anticipated in 2024 due to government backing and cutting-edge technology.

Additionally, MIDF Research has issued a “buy” call on KPJ, noting the healthcare company’s outstanding local performance after focusing on localizing its operations, with an unchanged target price of RM2.54 per share.

Research from Hong Leong Investment Bank predicts a flat annual increase in core earnings. With a higher target price per share of RM1.87, it kept its “hold” call on the shares – The Star

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