Analysts said they were optimistic on the group for its earnings growth trajectory over the next three years supported by bed expansion and higher revenue contributions.
KUALA LUMPUR (March 3): KPJ Healthcare Bhd’s (KL:KPJ) shares, which have been on an uptrend since the company announced record earnings last Thursday (Feb 26), rose to their highest since listing in 1994.
The stock reached an intraday high of RM3.26 on Tuesday before settling at RM3.20 a share at market close. Some 20.6 million shares changed hands. At its last price, the group was valued at RM14.5 billion. Year to date, the stock is up almost 19%.
The healthcare group reported its fourth quarter ended Dec 31, 2025 (4QFY2025) net profit rose 10.27% to RM132.9 million. Revenue also climbed by 10.25% to RM1.15 billion, marking the group’s highest quarterly revenue on record.
Analysts said they were optimistic on the group for its earnings growth trajectory over the next three years supported by bed expansion and higher revenue contributions.
KPJ also declared a single-tier dividend of 1.35 sen per share for the quarter, up from 1.05 sen previously.
In research notes on Monday (March 2), CIMB Securities highlighted KPJ’s newly unveiled 2026-2030 strategic plan built around digitalisation, care network development, improving patient outcomes, strategic upscaling and brownfield expansion, which painted clear growth momentum for the group.
Currently, KPJ has 3,934 beds as at end-2025 and plans to add 2,200 more beds to its current operational base alongside recruiting more than 500 medical consultants, said CIMB Securities.
Meanwhile, RHB Investment Bank raised its target price to RM3.37 and projected a 15% upside and a dividend yield of roughly 2%. It views KPJ’s five-year strategic plan as a structural shift towards an integrated academic health system model.
Total capital expenditure for the 2026-2030 roadmap is estimated at RM4 billion to RM5 billion, with expansion phased and prioritised at high-occupancy hospitals. While the research house expects higher debt drawdown to fund the expansion, it said KPJ’s net gearing remains manageable and within covenant limits.
Of the 17 research houses covering the stock, 11, including CIMB Securities and RHB Investment Bank, have ‘buy’ calls, while six recommended ‘hold’, Bloomberg data showed. The average 12-month target price is RM3.16.
According to AskEdge data, the company is currently trading at a price-to-earnings (PE) ratio of 37.7 times, which is higher than most peers. This PE ratio is at the higher end compared to its historical valuation in recent years.