KUALA LUMPUR (Aug 26): KPJ Healthcare Bhd (KL:KPJ) extended its losses on Wednesday, as its shares fell as much as 4.3% or 12 sen to RM2.68, their lowest since early January.
At market close, KPJ Healthcare pared some losses to close 10 sen or 3.57% lower at RM2.70, making it among the top decliners (by value) on Bursa Malaysia.
At RM2.70, the healthcare group, in which Johor Corp controls a 45.2% stake, is valued at RM11.95 billion.
The stock has declined 42 sen or 13.5%, over the past three trading sessions following news of its president and managing director Chin Keat Chyuan’s resignation. An estimated RM1.9 billion in market capitalisation has evaporated amid the persistent selling.
Trading volume shrunk to 50.27 million shares from 66.54 million shares on Monday. Nonetheless, the stock was the seventh most actively traded counter on Bursa Malaysia.
The selling pressure started last Friday (Aug 21), when KPJ Healthcare announced Chin’s resignation, ending his three-year tenure at the helm of the private hospital operator.
In a bourse filing announcing the resignation, KPJ Healthcare said Chin, 52, was leaving to pursue other interests. Professor Datuk Dr Hanafiah Harunarashid, the group's chief medical director, will serve as officer-in-charge pending the appointment of a new president and managing director.
The leadership change comes as KPJ Healthcare enters the second half of 2026 with stronger earnings momentum.
Its net profit grew nearly 25% to RM173.6 million for the six months ended June 30, 2026 (1HFY2026), from RM139.1 million a year earlier, while revenue increased 13% to RM2.25 billion from RM1.99 billion, driven by higher inpatient volumes and revenue per inpatient.
Despite the recent share price weakness, analysts remain broadly positive on KPJ Healthcare, with 13 analysts tracked by Bloomberg having a 'buy' recommendation, while the other five rated it a 'hold'.
The consensus 12-month target price is RM3.62, based on the average of analysts tracked by Bloomberg, also implying potential upside of 34% on Wednesday’s closing price.