“However, operating metrics suggest further room for organic recovery given that bed occupancies across key operating regions, especially in Singapore and Malaysia, have yet to reach optimal levels, which would support higher patient volumes.
Analysts remain optimistic on IHH Healthcare on the back of a strong rebound in its normal businesses post-reopening in 2QFY2022, offsetting a significant decline in Covid-19-related services.
CGS-CIMB Research analyst Tay Wee Kuang points out that Covid-19 services only made up 3% of IHH’s 2QFY2022 revenues, compared with 11% in 1QFY2022 and 16% in 2QFY2021. Despite this, IHH’s revenue grew 2.4% y-o-y to RM4.37 billion ($1.36 billion) in 2Q22, indicating a strong recovery in non-Covid-19 revenues that offset the earnings gap from a year ago.
