IHH Healthcare Berhad (IHH) Q4 2024 earnings summary

Executive summary

• Achieved robust double-digit core growth in revenue, EBITDA, and PATMI (excluding exceptional items) for FY2024, driven by increased patient volumes, higher revenue intensity, operational efficiency, and acquisitions across all markets.

• Declared a total dividend of 10.0 sen per share for FY2024, up 11% year-on-year, distributing about 40% of PATMI, above the 30% policy.

• Added nearly 1,000 new beds in 2024, supporting growth trajectory and operational expansion, with new facilities in Singapore, Hong Kong, and Shanghai.

• Maintained a strong balance sheet with RM4.3 billion net cash generated from operating activities and RM3.9 billion in capital expenditure.

• Reinforced leadership in clinical excellence, operational expansion, and ESG inclusion, with recognition in FTSE4Good Bursa Malaysia and Shariah indices.

Financial highlights

• FY2024 revenue reached RM24.4b (+16% YoY including MFRS 129; +14% excluding MFRS 129); EBITDA was RM5.4b (+17% YoY including MFRS 129; +14% excluding MFRS 129).

• PATMI (excluding exceptional items) was RM1.7b (+32% YoY including MFRS 129; +13% excluding MFRS 129); headline PATMI fell 10% to RM2.7b due to prior year one-off gains.

• Q4 2024 revenue was RM6.7b (+26% YoY including MFRS 129; +13% excluding MFRS 129); EBITDA was RM1.4b (+33% YoY including MFRS 129; +9% excluding MFRS 129).

• FY2024 occupancy rate at 71% (+2%); inpatient admissions up 4% to 906,356; lab tests up 7% to 104 million.

• EBITDA margin for FY2024 at 23%, within the 22%-24% guidance range.

Outlook and guidance

• Five-year plan targets close to 4,000 additional beds (+33% capacity) by 2028, with 1,000 already added in 2024.

• Revenue growth guidance of 10%-12% annually, supported by strong demand and capacity expansion.

• Focus for 2025 on market leadership, profitability, sustaining healthy ROE, and prudent capital management.

• Expanding ambulatory care and lab businesses, and evaluating value-accretive inorganic opportunities.

• Dividend policy to distribute at least 30% of PATMI, with recent payout at 40%.