This article first appeared in The Edge Financial Daily on February 27, 2020

KUALA LUMPUR: KPJ Healthcare Bhd reported a stronger net profit for the fourth quarter ended Dec 31, 2019 (4QFY19) at RM84 million, up 57.5% from RM53.32 million for the year-ago quarter.

The better performance came as growth at its Malaysian hospital operations lifted its quarterly revenue by 7.7% to RM944 million from RM876.55 million for 4QFY18, an exchange filing yesterday showed. It declared a half sen interim dividend for FY19, to be paid on April 20, bringing its FY19 payout to two sen, same as for FY18.

KPJ said its earnings growth was contributed by its existing and new hospitals — KPJ Rawang, KPJ Pasir Gudang, KPJ Tawakkal KL, KPJ Batu Pahat, KPJ Perlis and KPJ Bandar Dato’ Onn.

“This is evidenced by the increase in number of patients and procedures performed, in particular surgeries. The opening of the new block in KPJ Seremban has resulted in increased number of beds and consequently increased the revenue,” it said.

Its Malaysian segment’s profitability growth was in line with the increase in revenue and cost optimisation exercised, it said, after offsetting losses from newly-opened KPJ Batu Pahat and KPJ Miri for 4QFY19.

All these factors helped boost KPJ’s full-year net profit to RM211.37 million, up 17.8% from RM179.44 million for FY18. Revenue rose 7.1% to RM3.6 billion from RM3.37 billion.

KPJ said the additional capacity from new hospitals, which have started operations, coupled with the completion of the expansion at its existing hospitals will complement the rising demand for healthcare services among local and foreign patients.

“Notwithstanding the slower growth rate of Malaysia’s economy in 2019, the group is optimistic to continue its performance in 2020,” it added.

KPJ shares closed unchanged yesterday at 95 sen, after 3.53 million shares were traded, valuing the group at RM4.07 billion.