IHH's 4Q net profit up 74%, declares 3 sen dividend

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KUALA LUMPUR (Feb 25): IHH Healthcare Bhd saw its net profit for the fourth quarter ended Dec 31, 2015 (4QFY15) surge 74% to RM415.83 million or 5.06 sen per share due to revaluation gain on investment properties, investment tax allowance and exchange gains on non-Turkish Lira denominated loans.

It posted a net profit of RM239.23 million or 2.93 sen in 4QFY14.

Stripping off the exceptional items and the contribution from PLife REIT, IHH said its operational profit after tax and minority interests (PATMI) were down 11% at RM177 million due to financing costs for the acquisition of Global Hospitals, which closed during the quarter, loss from newly acquired hospitals and higher depreciation expenses primarily on the opening of new hospitals.

Revenue for the quarter come in 18% higher at RM2.29 billion from RM1.94 billion.

It declared a 3 sen first and final dividend for the financial year ended Dec 31, 2015 (FY15).

The better earnings in the last quarter also lifted its annual profit by 24% to RM933.9 million or 11.38 sen from RM754.29 million or 9.24 sen per share a year earlier.

The leading premium healthcare provider's annual revenue jumped 15.3% to RM8.46 billion from RM7.34 billion.

"We are pleased to report a solid financial performance in FY15 despite the ongoing volatility in the global economy," IHH managing director and chief executive officer Tan See Leng said in a separate statement.

"We have grown rapidly in the past few years, including undertaking transformational acquisitions to become a leading hospital player in India, making further inroads into the tertiary market in China and entering a new market in Myanmar," he added.

Going forward, Lim said IHH will build on this success with its commitment to enhance service offerings in existing hospitals and continue to extract maximum business synergies.

"IHH will ensure a continued strong pipeline is brought onstream in 2017, including opening of new flagship hospitals in Hong Kong and China," he added.

Shares in IHH closed unchanged at RM6.53 today, after 4.13 million shares changed hands, giving it a market capitalisation of RM53.7 billion.