KUALA LUMPUR (May 21): KPJ Healthcare Bhd (KL:KPJ) posted a 22.1% increase in net profit for the first quarter ended March 31, 2026 (1QFY2026), boosted by higher patient visits and surgeries as well as an improved after-tax share of profits from associates.

The group reported net profit of RM69.6 million, or 1.57 sen per share, from RM57.1 million, or 1.31 per share a year ago, while revenue rose 8.6% to RM1.05 billion, from RM967 million, a bourse filing showed.

The group declared an interim single-tier dividend of one sen per share, payable on July 17. Shareholders on the register as of June 23 will be entitled to the payout.

The healthcare provider said in a separate statement average revenue rose 6% for inpatients and 7% for outpatients, driven by more complex treatments and steady demand.

Inpatient admissions increased 2% to 88,863, while outpatient visits rose 1% to 695,332. Surgeries grew 2% to 27,565.

Bed occupancy rate stood at 60%, slightly lower due to added capacity during the quarter.

In the quarter, operating profit margins eased to 13.3% from 14.1% a year earlier, despite higher operating profit of RM139.25 million, pressured by a 13% increase in administrative expenses. The bottom line was also supported by a 52% surge in finance income to RM7.13 million, while the group's share of after-tax profits from associates more than doubled.

"The Ministry of Health’s decision to defer the implementation of the diagnosis related group (DRG) system to 2027 also provides added clarity for a smoother, more sustainable transition," it said in the Bursa Malaysia filing.

Looking ahead, KPJ anticipates a fluid external environment due to ongoing geopolitical tensions. Although the group has seen no direct material impact so far, "we will continue to monitor developments closely and take mitigating actions where necessary", KPJ noted.

As at market close on Thursday, KPJ shares were a sen or 0.3% lower to RM3.31, valuing the group at RM14.65 billion. Year to date, the stock has gained 23.05%.

Prior to the release of the 1Q results, Bloomberg data showed that out of 17 analysts coverage, ten have "buy" calls on the stock and seven have "hold" calls. The average 12-month target price is RM3.38 sen per share, with target prices ranging from RM2.80 sen to RM4.15.