KUALA LUMPUR: Kenanga Research expects a gradual earnings restoration for KPJ Healthcare Bhd
as a lower-than-expected variety of sufferers and higher-than-expected tax charge resulted in an earnings disappointment in FY21.
The analysis agency stated it downgraded its FY22 earnings forecast by 29% because of a decrease variety of sufferers and the next tax charge of 37%.
“Our TP is raised marginally from RM1.01 to RM1.04 based mostly on 30x FY23E EPS in keeping with historic 5-year ahead imply (roll ahead from FY22E to FY23E).
“With lack of rerating catalyst and the brand new hospitals beneath gestation interval which might proceed to be a drag to earnings, we reiterate our ‘market carry out’ name,” it stated.
In FY21, KPJ’s income rose 10% because of the next variety of sufferers.
However, Kenanga famous that the specified optimum working effectivity was but to be achieved because of excessive fastened prices, which comprise employees prices, upkeep prices and depreciation/amortisation and finance prices.
“Consequently, EBITDA and PBT fell 2% and 23%, respectively, which was additional exacerbated by decrease contribution from new hospitals beneath gestation interval.
“New hospitals nonetheless beneath gestation, comparable to KPJ Bandar Dato’ Onn, KPJ Batu Pahat, KPJ Perlis and KPJ Miri, remained loss-making, contributing to the decrease EBITDA weighing FY21 PATAMI decrease by 54%,” stated Kenanga.
The dealer added that FY21 Patami of RM51mil got here in beneath expectations at 60% and 84% of its and consensus estimates.
