Solid 1Q26 with margin resilience amid expansion

Research evidence excerpt

Solid 1Q26 with margin resilience amid expansion

Sunway Healthcare Holdings Berhad (SUNMED MK)

Equity Research

May 20, 2026

The Long View: Sunway Healthcare

Investment Thesis Risk/Reward - 12 Month View

SunMed is a well-established private hospital brand in Malaysia, offering

Upside : Downside

one of the deepest and most comprehensive healthcare platforms in the 2.8 1.83 : 1

market while also ranking among the fastest-growing private hospital 2.70 (+45%)

2.6

groups in recent years. The Group has a proven track record of rapidly

2.4

ramping up new hospitals and plans to expand bed capacity by >70% 2.30 (+24%)

by 2032 to meet rising domestic and regional demand. With its strong 2.2

brand, scalable network, and disciplined execution, we see SunMed as a 2

high-quality defensive yet high-growth healthcare name that stands out in 1.8

ASEAN. 1.6

1.4 1.40 (-25%)

1.2

2026 +12 mo.

Base Case, Upside Scenario, Downside Scenario,

MYR2.3, +24% MYR2.7, +45% MYR1.4, -25%

Our base case PT of RM2.30 is based on an Our upside PT of RM2.70 assumes a re-rating Our downside PT of RM1.40 incorporates

SOTP that values the mature operations via DCF toward 40x EV/EBITDA, in line with peak levels only the valuation of SunMed's existing

(using a 6.2% WACC) and pipeline hospitals on observed at premium regional hospitals such as operating hospitals and assumes that execution

project NPVs based on a stabilised EBITDA per Bumrungrad. SunMed, in our view, is emerging for upcoming greenfield expansion fails to

bed. as the region's premium medical tourism materialise.

destination, underpinned by strong brand equity,

growing international patient recognition, and a

differentiated tertiary care offering — driving a

structurally higher-margin patient mix.

Sustainability Matters Catalysts