Intel heads into its April 23 earnings with rising investor expectations , but the key question remains whether AI-driven CPU demand can offset ongoing margin weakness . Revenue Stable, But Margins Under Pressure Intel is expected to deliver Q1 revenue around US$12.4 billion , slightly above the midpoint of its guidance range. However, the real concern lies in profitability: Gross margin guided at 34.5% , down from 39.2% a year ago EPS near breakeven (~US$0.00) vs US$0.13 last year This highlights continued pressure from costs, utilisation, and product mix , despite improving demand signals. AI CPUs: A Key Growth Driver Intel’s near-term bullish case centers on AI-related CPU demand , particularly its Xeon processors. A key development is its partnership with Alphabet , which reinforces: Intel’s role in AI data centre infrastructure Growing demand for AI inference and general-purpose computing Investors will watch c...
Revenue Surges 26% on Strong Healthcare Demand, Acquisitions
- IHH Healthcare Bhd (KL:IHH) reported a slight increase in net profit to RM732 million for 4QFY2024, up from RM728 million a year earlier.
- Quarterly revenue jumped 26.5% to RM6.69 billion, fueled by:
- Higher inpatient volumes and revenue intensity from more complex cases.
- The consolidation of Timberland Medical Centre and Island Hospital post-acquisition.
Dividend Payout Increased
- Final dividend declared: 5.5 sen per share, payable on April 28.
- Total FY2024 dividend: 10 sen per share, up from 9 sen per share in FY2023.
- Dividend payout ratio: 40% of profit after tax and minority interests (Patmi), exceeding the 30% policy threshold.
Financial Performance Breakdown
- Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 33% YoY to RM1.4 billion.
- Excluding MFRS 129 effects (hyperinflation adjustments in Türkiye), revenue and EBITDA would have grown 13% and 9% YoY, respectively.
- Cost pressures impacted profitability, with:
- Staff costs up 33% YoY to RM2.59 billion.
- Finance costs surging 38% YoY to RM341 million.
- Depreciation and impairment charges rising 37% YoY to RM372 million.
Full-Year Profit Declines Despite Revenue Growth
- FY2024 net profit fell 10% to RM2.66 billion, impacted by:
- Foreign exchange losses.
- Higher staff and depreciation costs.
- Annual revenue grew 16% to RM24.38 billion, driven by sustained healthcare demand across key markets.
Optimistic Outlook: Expansion Plans and Strategic Growth Priorities
- IHH to add nearly 4,000 new beds over the next four years to meet rising demand.
- Plans to enhance profitability while mitigating inflationary and interest rate risks.
- Focus on high-value, cost-effective healthcare and improving clinical outcomes.
- CEO Dr. Prem Kumar Nair: Confident in strengthening IHH’s position as a global healthcare leader while delivering healthy returns to shareholders.
Stock Performance
- IHH shares closed at RM7.31 on Thursday, gaining one sen.
- Market capitalisation: RM64.35 billion.
- Stock has climbed roughly 17% since August 2024.
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