KUALA LUMPUR (June 26): Private hospital operator KPJ Healthcare Bhd (KL:KPJ), in which Johor Corp (JCorp) owns a 44.99% stake, plans to add up to 5,000 hospital beds by 2028 as part of the group’s ongoing efforts for adding new beds, which began last year.
KPJ president and managing director Chin Keat Chyuan said the group “had been spending for the last few years” to expand its new beds and services, without disclosing the value.
“We are expanding, in terms of our beds, from 3,733 now to the future...by 2028, hopefully 5,000 beds,” Chin said at a press conference, as KPJ held its first physical annual general meeting since 2019 on Wednesday.
KPJ, which operates 29 hospitals in Malaysia, one in Bangladesh and one in Thailand, expects the group to raise its total bed capacity to 4,101 beds by the end of this year.
Confident of higher revenue from healthcare tourism
KPJ, whose shares have gained 35.21% year-to-date, is optimistic that the group is well placed to expand its medical tourism revenue this year, post-Covid-19, according to Chin.
KPJ’s medical tourism revenue jumped 41% to RM190 million in FY2023, from RM134 million a year ago. This segment contributed about 8.5% to the group’s total hospital business revenue.
“It has to be double-digit [growth] this year because Malaysia’s market itself is growing by double-digit. It can’t grow anything less than that,” he said without specifying an exact forecast figure.
“Certainly, even in the first five months [of 2024], we have seen the trend [going upwards]. We are growing faster than Malaysia’s health tourism. That’s for sure,” he added.
KPJ’s net profit for the three months ended March 31, 2024 (1QFY2024) jumped 38.92% to RM71.4 million from RM51.39 million a year earlier, on the back of higher revenue, driven by higher inpatient visits and increased bed capacity. Quarterly revenue rose 11.41% to RM908.02 million, from RM814.99 million.
For the full financial year ended Dec 31, 2023 (FY2023), KPJ’s net profit climbed 57.75% to RM263.4 million, from RM166.98 million in FY2022, as revenue increased 19.18% to RM3.42 billion, from RM2.87 billion.
KPJ’s counter closed unchanged at RM1.92 on Wednesday, valuing the group at RM8.69 billion.