IHH Healthcare Berhad: Earnings miss on Singapore deterioration; 2H recovery with guidance unchanged

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IHH Healthcare Berhad: Earnings miss on Singapore deterioration; 2H recovery with guidance unchanged

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IHH Healthcare Berhad

Earnings miss on Singapore deterioration;

2H recovery with guidance unchanged

Reiterate Rating: BUY | PO: 10.00 MYR | Price: 8.98 MYR

Singapore decline weighs on the qtr 27 May 2026

IHH 1QCY26 EBITDA at MYR1.43Bn (21.9% margin) missed street estimates (MYR1.55 Equity

bn) on Singapore EBITDA decline due to structural market shift & longer holiday season.

IHH expects 2HCY26 recovery in Singapore with efforts to manage market changes,

Key Changeswhich in our view will be key to 2026 guidance (DD growth and 22-24% margin).

(RM) Previous Current

Price Obj. 9.16 10.00Singapore – Work in progress?

While the MountE Orchard expansion has weighed on Singapore earnings over the last 2 2026E EPS 0.28 0.29

years, the much-awaited improvement was impacted by shift towards public healthcare 2027E EPS 0.31 0.35

reflected in 8% decline in IP admissions. IHH pointed to 2H recovery through its three 2028E EPS NA 0.41

pronged strategy – a) redefining patient targeting with MountE focusing on high

intensity case, while Daycare/ACC expansion to support out-of-hospital growth; b) Neha Manpuria >>

Research Analyst

expand medical tourism to go after non-traditional markets like Cambodia, Philippines, BofAS India

Vietnam; c) Tie-up with corporates & contract with insurers with more price competitive +91 22 6632 8307 neha.manpuria@bofa.com

packages. IHH expects flat margin in 2026 aided by volume growth & cost measures.

Charul Agrawal >>

BofAS IndiaBright spots in the qtr – India, Türkiye, Malaysia +91 22 6632 8255

Performance in other key markets was strong with focus on volume growth and revenue charul.agrawal2@bofa.com

intensity going forward.