KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
IHH Seen as Sector Leader
CIMB Securities has reaffirmed IHH Healthcare Bhd (KL:IHH) as its top choice in the healthcare sector, citing the group’s diversified international operations as a key strength against Malaysia’s regulatory headwinds.
In a note on Friday, the research house highlighted IHH’s attractive valuation, resilient earnings profile, and strong recovery prospects, particularly in Singapore. The division is expected to deliver a meaningful rebound in 4Q2025, following the completion of renovation works at Mount Elizabeth by the third quarter.
“We like IHH for its execution strategy, established regional footprint, and focus on high-income clients, which collectively support earnings resilience,” CIMB said.
Regulatory Pressures in Malaysia
Malaysia’s private healthcare sector has faced margin pressure in 1H2025, driven by tighter insurer reimbursement terms. Inpatient visit growth contracted to low single digits, with CIMB expecting payor pressure to persist into 2026, alongside the government’s 10% annual cap on medical insurance premiums.
Despite these challenges, IHH’s global asset base offers a buffer, reducing reliance on domestic operations and enhancing long-term stability.
KPJ Deemed More Vulnerable
In contrast, KPJ Healthcare Bhd (KL:KPJ) is seen as more exposed to local risks, given its Malaysia-centric operations. CIMB warned that KPJ faces margin compression from persistent payor pressure and higher lease charges linked to the expanded sales and service tax.
The firm described KPJ’s current valuation as “stretched,” reflecting a less favorable risk-reward profile compared to IHH.
Ratings and Valuations
IHH Healthcare: Buy, target price RM8.50
KPJ Healthcare: Hold, target price RM2.80
Sector Outlook: Overweight
At the time of writing, IHH shares were unchanged at RM7.37 (market cap RM65.1 billion), while KPJ gained 0.8% to RM2.60 (market cap RM11.8 billion).
Comments
Post a Comment