Sunway Healthcare Holding (SUNMED MK) Hold: Strong debut; tougher questions ahead

Research evidence excerpt

Sunway Healthcare Holding (SUNMED MK) Hold: Strong debut; tougher questions ahead

tions and higher clinical acuity. In

particular, some drivers of revenue growth include the anniversary of SMC Ipoh 52-WEEK PRICE (MYR)

(opened in April 2025) and the upcoming opening of 216-bed Tower F (Children’s 2.50

Tower) of the flagship SMC Sunway City Kuala Lumpur. In this note, we also take

2.10

into account the better-than-expected operational metrics (average revenue per

inpatient, average length of stay, and average daily census) in 1Q26. However, we 05/25 11/25 05/261.70

model in more gross profit margin (GPM) compression in this update as we take into Target price: 1.90 High: 2.37 Low: 1.83 Current: 1.84

account the potential impact of an inflationary environment on drug prices and to a Source: LSEG IBES, HSBC estimates

lesser extent, the potential impact from the SMC Sunway City’s participation in the

base MHIT program. Selviana Aripin*, CFA

Analyst, ASEAN Consumer and Healthcare

Maintain Hold rating: We view Sunway Healthcare as the best proxy for growing The Hongkong and Shanghai Banking Corporation

Limited, Singapore Branch

healthcare demand in Malaysia. Our HSBC proprietary analysis indicates that in spite selviana.aripin@hsbc.com.sg

of the strong hospital bed supply growth, demand still outstrips supply, as discussed +65 6658 0610

in our report, dated 20 April 2026. We continue to project total private hospital bed Rayman Kaur Chadha*

Associate

capacity in Malaysia to grow at a 4.4% CAGR from 2025 to 2028. We see Bangalore

SUNMED’s single-country exposure as a strength (not a weakness) as it means

undivided management attention to the needs of the local community, allowing the * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is