According to Tan, private hospitals showed moderating revenue in 2HFY2023 as public hospitals’ occupancy also eased, and ebitda margin was pressured due to higher costs.
Despite softer industry-wide numbers, Rachel Tan of DBS Group Research has maintained her "buy" call on IHH Healthcare (SGX:Q0F
) , indicating this counter as more preferable over the less diversified Raffles Medical Group (SGX:BSL) , which has warranted a "hold" call.
In her April 12 note, Tan points out that IHH Healthcare is likely to see softer 1HFY2024 ending June numbers, as the local healthcare industry to normal growth rates following the easing of shortage of hospital beds, with demand easing following the pandemic and new capacity added.
