SINGAPORE (Aug 24): Regional private healthcare provider Health Management International (HMI) reported a 3.5% rise in FY17 earnings to RM20.6 million ($6.5 million) from a year ago.
This follows a doubling of 4Q earnings to $10.7 million after the group completed the consolidation of ownership of its two hospitals, 48.9%-owned Mahkota Medical Centre and 60.8%-owned Regency Specialist Hospital, to 100% each.
With the completion of the consolidation, 100% of net income is now attributable to HMI shareholders.
On a full year basis, the group’s revenue increased 9.5% y-o-y to a record RM435.8 million for FY17.
This was driven by higher patient loads and average bill sizes at the group’s two hospitals.
The group’s education business registered a RM5.6 million rise in revenue due to an increase in student enrolment.
In line with the growth in revenue, the group's gross profit increased 10.8% y-o-y to RM143.8 million.
HMI says the group has seen consistent increases in local and overseas patient load on a quarter-on-quarter basis over the year.
In 4Q17, patient load grew 3.7% y-o-y despite Hari Raya falling in June.
To meet the growing demand for private healthcare, both hospitals continue to expand capacity.
At Mahkota, operational bed capacity will be increased from 266 beds to 300 beds in FY2018, with further plans to progressively add capacity to a target of 340 beds in the future.
At Regency, operational bed capacity will be increased from 166 beds to 200 beds in FY18.
In view of the performance of the group, a final dividend of RM1.0 cents per share has been recommended.
Shares in HMI closed 3 cents higher at 65 cents on Wednesday.
