Update KPJ 1Q profit falls despite higher revenue

Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 22 May 2013 13:15
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KUALA LUMPUR (May 22): KPJ HEALTHCARE BHD [] posted a net
profit of RM25.1 million for the first financial quarter to March 2013, a
fall of 25% year-on-year, despite a rise in its revenue.
Revenue for the quarter rose to RM545.1 million from RM525.6 million a
year ago.
Reviewing its results, the company said revenue in Malaysia increased
by 2% to RM491.6 million, while revenue of RM6.9 million in Indonesia
was 38% higher than the revenue reported in 2012.
Revenue of its aged care facility and support services also increased by
19% and 18% respectively due to stronger marketing.
Explaining on the drop in profit, KPJ said: “A total of RM10 million was
included in the preceding quarter as a result of gain on disposal of
shares in Al-‘Aqar Healthcare REIT and gain on revaluation of
investment PROPERTIES [].”
For the current year, the company said the healthcare industry is
expected to enjoy continued growth in this current year, driven by
population growth, rapid ageing, the rising of middle income and health
tourism.
In the current year, KPJ will open its new hospitals: KPJ Sabah
Specialist Hospital, Pasir Gudang Specialist Hospital, Maharani
Specialist Hospital and Rawang Specialist Hospital.
“The expansion of existing hospitals will have a positive impact to the group results for 2013. However, this will be moderated
by the new greenfield hospitals where each of this hospital will have an average gestation period between three to five
years,” it said in its filing to Bursa Malaysia.