KUALA LUMPUR: IHH Healthcare Bhd’s second quarter ended June 30, 2015 (2QFY15) net profit rose 9% from a year earlier on higher revenue from its existing global hospitals. Lower taxes and minority interest also supported profit growth.

In a filing with Bursa Malaysia yesterday, IHH (fundamental: 1.65; valuation: 0.7) said net profit rose to RM228.11 million in 2QFY15 from RM209.1 million. Revenue increased to RM2.09 billion from RM1.87 billion.

IHH said the better performance was attributed to its organic growth of existing operations and the commencement of operations at the Acibadem Atakent Hospital in Turkey, Pantai Hospital Manjung in Perak and Gleneagles Kota Kinabalu in Sabah.

For the six months, IHH reported a rise in net profit of RM399.59 million from RM368.16 million a year earlier. The group registered a RM4.1 billion in revenue compared with RM3.62 billion.

IHH managing director and chief executive officer Dr Tan See Leng said the acquisition of Continental Hospitals in India had further widened its footprint in that key market.

“We will continue to explore opportunities in key high-growth markets while keeping a firm hand on our diversified operations and pipeline of beds coming on stream,” Dr Tan said.

On the outlook, IHH expects its capacity to reach more than 10,000 beds before 2017, with the expansion of existing facilities through new developments and selective acquisitions.

The group also expects preoperating and start-up costs to partially erode profitability in the initial stage.

IHH shares closed one sen or 0.2% higher at RM5.71, with a market capitalisation of RM46.95 billion.

This article first appeared in digitaledge Daily, on August 27, 2015.