IHH Healthcare Berhad is a Malaysia-headquartered healthcare group and the largest private healthcare firm in Asia. Founded in 1974, the company has grown rapidly through strategic acquisitions and organic expansion. As a key player in the healthcare industry, IHH Healthcare operates a network of hospitals, clinics, and other healthcare facilities across multiple countries.
The company's core business focuses on providing a wide range of healthcare services, including inpatient and outpatient care, medical specialties, and integrated healthcare solutions. IHH Healthcare caters to patients from various segments, offering both private and public healthcare services. With a strong emphasis on quality care and medical expertise, the company has built a reputation for excellence in the healthcare sector. IHH Healthcare's shares are listed on the Bursa Malaysia under the ticker code IHH.
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IHH Healthcare EPS and Revenue Breakdown 2020-2023
| Source: TradingView | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | MYR 0.08 | MYR 13.4 billion |
| 2021 | MYR 0.18 | MYR 17.13 billion |
| 2022 | MYR 0.16 | MYR 17.99 billion |
| 2023 | MYR 0.30 | MYR 20.93 billion |
Healthcare Industry Comparison
IHH Healthcare Share Price, Chart & Dividend Yield
After a brief rise from August 2021 to December 2021, the IHH Healthcare share price has moved somewhat sideways. Some may consider its share price stable over the last few years, with no significant move up or down.
Dividend Yield: 1.44%
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IHH Healthcare Share Price Forecast
Data compiled by TradingView shows that out of 20 investment analysts covering IHH Healthcare shares, 17 have a Buy rating on the stock and three have assigned it a Hold rating. Here is one bull and one hold case for the stock:
The Bull Argument: In a recent note to clients, RHB-OSK maintained an Overweight (Buy) rating on IHH shares, telling investors that the private healthcare sector is set to record a stronger second half of 2024 performance, predicated by organic expansion strategies and the extension of visa-free entry for tourists from China and India. “IHH remains our sector pick, underpinned by its relatively steady margin profile, strategic asset location in capturing patient footfall, solid balance sheet, and a more aggressive expansion plan vs its peers,” wrote the bank.
The Neutral Argument: Following IHH's most recent earnings release, analysts at TA noted the company's “double-digit revenue and EBITDA growth across all key markets in 1Q24, except for Malaysia.” However, the firm maintained its Hold rating and MYR6.65 target on the stock based on SOTP (sum of the parts) valuation.
Average Analyst Consensus 12-Month Price Target: MYR 7.35
Who Should Buy IHH Healthcare Shares
IHH Healthcare offers an attractive investment proposition. However, as with any investment, careful consideration of the company's performance and future aspirations is essential, as they should align with your investing profile. Below are some investor profiles that may find IHH Healthcare appealing:
Healthcare Sector Investors: If you seek exposure to the growing healthcare industry, especially in the Asia Pacific region, IHH Healthcare is a compelling option. The company's strong market position and diversified geographic footprint provide exposure to a sector with consistent demand.
Long-Term Growth Investors: Investors with a long-term horizon who believe in the increasing healthcare needs of growing populations and the potential for healthcare industry expansion in the region may find IHH Healthcare an attractive investment.
Risk-Averse Investors: Given the lack of significant volatility in the company's share price, investors who are somewhat risk-averse and looking for a regular income may want to take a closer look at IHH shares.
Dividend-Seeking Investors: While not as prominent as some other companies, IHH Healthcare has a history of returning value to shareholders through dividends. Investors seeking regular income streams may consider the company.
Emerging Market Investors: As a leading healthcare player in emerging markets, IHH Healthcare can offer exposure to the growth potential of these regions. Investors interested in diversifying their portfolios into this emerging market may find the company appealing.
