First Read: KPJ Healthcare Bhd "Q1: Intensity growth outpaces volume growth"

Research evidence excerpt

First Read: KPJ Healthcare Bhd "Q1: Intensity growth outpaces volume growth"

Global Research

25 May 2026ab

First Read

EquitiesKPJ Healthcare Bhd

Q1: Intensity growth outpaces volume growth Malaysia

Healthcare Providers

12-month rating Neutral

Intensity growth amid a seasonal start

KPJ hosted an analyst briefing post-Q1 2026 results. Revenue of RM1,050m (+9% 12m price target RM3.20

YoY; -9% QoQ) exceeded the RM1bn mark (a first for Q1), supported by resilient

demand and higher revenue intensity. While patient volume growth was modest

Price (22 May 2026) RM3.23

(inpatient +2% YoY; outpatient +1% YoY), overall earnings quality improved due to a

stronger, more favourable case mix. Overall, we view the results as a good start to the RIC: KPJH.KL BBG: KPJ MK

year, with growth largely driven by intensity rather than volume. Trading data and key metrics

52-wk range RM3.52-2.37

Modest inpatient and outpatient volume growth

Market cap. RM14.1b/US$3.55b

Average revenue per inpatient improved to RM8,564 (+6% YoY) despite only modest

Shares o/s 4,361m (ORD)

inpatient volume growth of 2% YoY. Similarly, average revenue per outpatient improved

Free float 55%

to RM343 (+7% YoY) following soft outpatient volume growth of 1% YoY. Utilisation

Avg. daily volume ('000) 9,755

remained largely stable (BOR down 2ppts YoY; same bed basis flat), with the number of

operational beds increasing to 3,883 (+2% YoY). Medical tourism revenue grew to Avg. daily value (m) RM31.7

RM68m (21% YoY;+5% QoQ), still making up low-to-mid single-digit percentage of Common s/h equity (12/26E) RM2.96b

total group revenue. Management continues to emphasise its clinical positioning P/BV (12/26E) 4.8x

through COEs in key specialties including cardiac, oncology and orthopaedics, among Net debt to EBITDA (12/26E) 3.0x