Limited competition makes Putrajaya attractive for SunMed: HLIB
KUALA LUMPUR: Sunway Healthcare Holdings Bhd’s (SunMed) proposed expansion into Putrajaya presents a growth opportunity, supported by limited private hospital competition, according to Hong Leong Investment Bank Bhd (HLIB) Research.
Sunway Healthcare Holdings Bhd (SunMed) seeks to expand its operations to Putrajaya by forming a joint venture with Tapak Senja Sdn Bhd, owned by Putrajaya Holdings Sdn Bhd (PJH). The proposed 60:40 partnership aims to construct a multi-specialty tertiary private hospital, expected to commence construction in 2027 and complete by 2031.
The hospital will occupy approximately 1.01 hectares of freehold land adjacent to Putrajaya Sentral, serviced by the Express Rail Link and Mass Rapid Transit stations. HLIB Research views the development positively, as Putrajaya currently lacks private hospitals and the existing public hospital is reportedly crowded, presenting an opportunity for SunMed.
SunMed will contribute capital and arrange for a subsidiary to lease the hospital from the joint venture company, while PJH will provide capital, facilitate land acquisition, and offer expertise in real estate development and construction. Despite these developments, HLIB Research maintains a 'Hold' rating on SunMed shares with an unchanged target price of RM2.05, as earnings forecasts remain unchanged, with anticipated benefits beyond their financial year 2026 to 2028 forecast.
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