KUALA LUMPUR (Feb 26): KPJ Healthcare Bhd reported a stronger net profit in its fourth quarter ended Dec 31, 2019 (4QFY19) at RM84 million, up 57.5% from RM53.32 million in the year-ago quarter.

This was as growth at its hospital operations in Malaysia lifted its quarterly revenue by 7.7% to RM944 million from RM876.55 million in 4QFY18, an exchange filing today showed. It declared a 0.5 sen interim dividend for FY19, to be paid on April 20, which brings its FY19 payout to 2 sen, same as FY18.

In its filing, KPJ said its earnings growth were contributed by its existing and new hospitals, namely 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,” the hospital operator explained.

According to KPJ, the growth in profitability for its Malaysia segment was in line with the increase in revenue and cost optimisation exercised, despite the losses from newly-opened hospitals KPJ Batu Pahat and KPJ Miri in 4QFY19.

All these helped boost KPJ’s full-year net profit to RM211.37 million, up 17.8% from RM179.44 million in FY18. Revenue rose 7.1% to RM3.60 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.

As of writing, shares in KPJ were one sen higher at 96 sen, after 1.98 million shares were traded. This values the group at RM4.09 billion.