Kuala Lumpur: IHH Healthcare Bhd, the world’s second-biggest health care provider by market value, rose the most in three weeks after reporting a fivefold jump in second quarter earnings.
The stock climbed 1.3 per cent to 3.15 ringgit (Dh3.7) as of 10.46am in Kuala Lumpur trading, set for its biggest gain since August 7. The company said on Tuesday its net income surged to 403.5 million ringgit, or 6.5 sen per share, in the three months ending June 30, from 76.7 million ringgit, or 1.7 sen per share, the same period a year earlier.
“IHH’s growth initiatives are on track, with 2,000 new beds boosting capacity by 40 per cent over the next three-to-five years, helping to extend its leadership position in its home markets,” Su Tye Chua, an analyst at Credit Suisse Group AG, wrote in a report on Wednesday, maintaining an outperform rating and target price of 3.75 ringgit.
IHH, controlled by Khazanah Nasional Bhd and Mitsui & Co, raised 6.3 billion ringgit through an initial public offering last month, the world’s third largest share sale this year. The issue was 131 times oversubscribed by institutions, including Blackrock Inc. and AIA Group Ltd.
The company said revenue tripled to 2.7 billion ringgit. The results were boosted by inaugural contributions from Acibadem Saglik Hizmetleri & Ticaret AS, Turkey’s largest hospital group, in which IHH bought a 60 per cent stake in January. It also recognised one-time gains from the sale of 216 medical suites at Singapore’s Mount Elizabeth Novena Specialist Centre and the revaluation of investment properties, according to the statement.
