KPJ Healthcare Q2 profit seen rising to RM92mil
KUALA LUMPUR: KPJ Healthcare Bhd is expected to report a sequentially stronger second quarter 2026 (Q2 FY26) net profit of about RM92 million, said RHB Research.
KPJ Healthcare Bhd anticipates a higher second quarter net profit of around RM92 million for Q2 2026, according to RHB Research. The firm attributes this increase to growing patient volumes, enhanced revenue intensity, and restored margins. Consequently, first-half 2026 earnings are projected to hit 40% and 41% of both internal and analyst estimates.
The fourth quarter is expected to outperform due to KPJ's domestic-focused portfolio and lower medical tourism exposure. RHB Research predicts a 4% YoY rise in revenue intensity and a 1% YoY increase in inpatient admissions, with EBITDA margin conservatively estimated at 22.5%. The sequential margin improvement is anticipated to stem from elevated bed occupancy post-festive season and investments in IT and digital infrastructure.
RHB Research assumes a 32% effective tax rate, closer to the 28-31% range management has indicated. The firm recently inaugurated its third Center of Excellence (COE) at KPJ Penang Specialist (Orthopaedic & Rheumatology), complementing the Heart & Lung COE at KPJ Johor Specialist Hospital and Neuroscience & Stroke COE at Damansara Specialist Hospital 2.
These additions aim to bolster clinical capacities and augment revenue intensity over time by harnessing secondary hospital networks and primary care alliances for referral growth. RHB maintains a Buy rating on KPJ Healthcare with a RM3.77 target price.
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