IHH Healthcare, one of Asia’s largest healthcare service providers, is set to expand its operational bed capacity by 33% by 2028, adding approximately 4,000 beds across key markets. This strategic move aims to drive a 10% compound annual growth rate in hospital and healthcare revenue. The expansion will primarily focus on India, Malaysia, and Türkiye, with significant developments also planned for Europe and Hong Kong. In Singapore, the company will establish over five new clinics and launch two new ambulatory care centres.
The company reported a healthy operational performance in the second quarter of 2025, despite facing currency translation losses. IHH’s revenue rose by 7% year-on-year to MYR6.4b, with an EBITDA increase of 2% year-on-year. The company maintained its EBITDA margins at 22%, a testament to its efficient management and strategic expansion plans.
IHH’s “out of hospital” strategy is designed to ease payer pressure, preserve margins, and enhance return on equity by shifting low-acuity treatments to day-care settings. This approach reduces average treatment costs and addresses insurer concerns over routine case inflation. “By diverting low-acuity, high-volume treatments with shorter lengths of stay into day-care settings, IHH lowers average treatment costs,” the company stated.
Despite insurer pressures, IHH’s margins are expected to remain resilient, supported by cost efficiencies and a better case mix. The company continues to focus on complex surgical cases, which are expected to maintain margins within the 22%–24% range.
IHH Healthcare’s diversified footprint and strong growth prospects underpin its earnings resilience, with a target price raised to $1.82 (MYR8.60/S$2.61). The company operates over 80 hospitals in 10 countries, including brands like Acibadem, Mount Elizabeth, and Gleneagles.
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