Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 23): KPJ Healthcare Bhd's net profit fell 6% to RM30.56 million in the third quarter ended Sept 30, 2017 (3QFY17) from RM32.5 million a year ago, dragged down by the Indonesia segment's lower earnings before interest, taxes, depreciation, and amortisation (Ebitda) and negative Ebitda in the Australia segment.

Earnings per share also fell to 1.58 sen from 1.71 sen in 3QFY16.

Quarterly revenue, however, rose 4.7% to RM803.2 million from RM767.04 million on higher contribution from the Malaysia and Indonesia segments, which saw an increase in the number of inpatients and outpatients respectively.

In a filing with Bursa Malaysia today, KPJ also noted that certain existing hospitals in Malaysia that had turned around during the last financial year ended Dec 31, 2016 (FY16) had also contributed to the increase in the group's revenue for 3QFY17.

The group also declared an interim dividend of 0.4 sen per share for FY17, payable on Dec 22.

For the cumulative nine months (9MFY17), net profit grew 4.1% to RM100.99 million from RM97 million, while revenue increased 5% to RM2.39 billion from RM2.28 billion a year ago.

On current year prospects, KPJ said it is confident that the revenue from the matured and new hospitals will continue to improve and it foresees that its results will be improving in tandem with more new hospitals completing their gestation period.

"As the biggest contributor in the group, the Malaysia segment will continue to improve, especially from the new hospitals that [have] completed their gestation period. Besides, the existing hospitals with expansion planning will also be the contributors on sustaining its positive performance," it added.

With the rising demand and positive economic outlook in the Indonesia segment, KPJ said the hospital operation will also continue to expand its bed capacity and services.

As for its Australia segment, KPJ pointed out that this segment is committed to work harder to maintain its business performance as a result of economies of scale in Jeta Gardens in Brisbane and higher capacity of the retirement village. KPJ has a 57% stake in Jeta Gardens.

At 3.48pm, KPJ shares were traded up 2 sen or 2% at RM1.02, with 249,500 shares done, bringing a market capitalisation of RM4.3 billion.

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