Company Coverage
KPJ Healthcare (KPJ MK): 2Q26: Decent Showing As Revenue Intensity Shine Continues
BUY (Maintained)
Current price:
Target price:
Upside:
RM3.02
RM3.85
+26.2%
Analyst
Highlights
Earnings were within expectations. A drive in inpatient intensity lifted both sales and margins.
Higher opex for the quarter was balanced by lower finance cost and favourable tax rate for core margins to expand marginally.
Maintain BUY and target price of RM3.85. We like KPJ for its inflection point of gestating hospitals and aggressive multi-year brownfield expansion.
Analysis
- Within expectations. KPJ Healthcare (KPJ) reported a 2Q26 net profit of RM103.9m (49% qoq, +27% yoy), bringing 1H26 core profit to RM174m (25% yoy). Core profit is within our and consensus expectations, accounting for 42% of both our and consensus full-year forecasts respectively. We expect better seasonality for the remaining quarters to shore up full-year earnings. 2H typically accounts for about 60% of full-year earnings. An interim DPS of 1.1 sen was declared, bringing 1H26 DPS to 2.1 sen (1H25: 1.85 sen).
Highlights
Earnings were within expectations. A drive in inpatient intensity lifted both sales and margins.
Higher opex for the quarter was balanced by lower finance cost and favourable tax rate for core margins to expand marginally.
Maintain BUY and target price of RM3.85. We like KPJ for its inflection point of gestating hospitals and aggressive multi-year brownfield expansion.
Analysis
- Within expectations. KPJ Healthcare (KPJ) reported a 2Q26 net profit of RM103.9m (49% qoq, +27% yoy), bringing 1H26 core profit to RM174m (25% yoy). Core profit is within our and consensus expectations, accounting for 42% of both our and consensus full-year forecasts respectively. We expect better seasonality for the remaining quarters to shore up full-year earnings. 2H typically accounts for about 60% of full-year earnings. An interim DPS of 1.1 sen was declared, bringing 1H26 DPS to 2.1 sen (1H25: 1.85 sen).
BUY (Maintained)
Current price:
Target price:
Upside:
RM3.02
RM3.85
+26.2%
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
