Shares of DRB-Hicom Bhd surged to a three-month high after delivering earnings well above expectations. The stock climbed as much as 8% to RM1.24, valuing the group at roughly RM2.4 billion. But beneath the headline beat, analyst opinions remain sharply divided. What Drove the Surprise According to Hong Leong Investment Bank : 4QFY2025 core PATAMI: ~RM136 million FY2025 core earnings: ~RM178 million Earnings came in at 189% of HLIB’s forecast Key drivers: Strong Proton vehicle sales Improved margins Land sales contribution Proton highlights: 19,800 units sold in January 2026 (record high) Over 100,000 bookings for Saga MC3 3,000+ deliveries of e.MAS 5 EV in January Consolidation of manufacturing at Tanjung Malim for cost efficiency Money Master Take This is a classic case of headline beat vs structural sustainability . 1️⃣ Proton Is Carrying the Story The turnaround narrative rests heavily on Proton. Sales momentum is strong EV adoption gaining traction Geely reg...
Malaysia’s IPO market just received a major catalyst.
Sunway Healthcare Holdings Bhd has begun bookbuilding for a RM2.86 billion (US$734 million) IPO, potentially the country’s largest listing since 2017.
The company plans to list on March 18 at RM1.45 per share, implying a RM16.7 billion valuation.
That would make it the second-largest listed healthcare provider in Malaysia after IHH Healthcare Bhd.
Deal Snapshot
Shares offered: 1.97 billion
IPO price: RM1.45
Market cap: RM16.7 billion
Proceeds use:
Hospital expansion
New hospital construction
Redemption of Islamic medium-term notes
Cornerstone investors include:
JPMorgan Asset Management
Eastspring Investments
RBC Global Asset Management
Parent company: Sunway Bhd
Existing listed carve-outs include Sunway Construction Group Bhd and Sunway Real Estate Investment Trust.
Money Master Take
This IPO matters for three reasons beyond the headline size.
1️⃣ A Healthcare Growth Platform, Not a Defensive Play
Sunway Healthcare operates:
5 private hospitals
Ambulatory and specialty centers
3 new hospitals under construction
Plans for up to 5 additional facilities
This is an expansion story tied to:
Aging demographics
Rising middle-class healthcare spending
Medical tourism recovery
Key Insight: This is capacity-driven growth, not yield-driven stability.
IPO Window Is Reopening in Malaysia
Malaysia’s IPO proceeds fell 14% last year.
A RM2.86 billion deal signals:
Institutional liquidity is available
Valuation appetite has improved
Kuala Lumpur is trying to reassert itself regionally
The listing also comes as the MSCI Malaysia Index gained only 6.8% over the past year, underperforming broader Asia.
This creates room for capital rotation.
Carve-Out Strategy Unlocking Value
Sunway has a clear track record of spinning off mature units:
Construction
REIT
Now healthcare
Carve-outs typically:
Unlock higher sector-specific multiples
Improve capital allocation transparency
Reduce conglomerate discount
If priced well, this could narrow valuation gaps between healthcare pure-plays and diversified holding companies.
What Investors Should Watch
Key evaluation points:
IPO valuation vs IHH Healthcare multiples
Hospital bed capacity growth timeline
Debt reduction impact post-note redemption
Institutional oversubscription levels
Healthcare is generally a defensive-growth hybrid sector — but expansion-heavy models depend on occupancy ramp-up speed.
Bottom Line
Malaysia’s largest IPO in years signals improving primary market confidence.
Sunway Healthcare is positioned as a multi-year capacity expansion story.
Execution on hospital ramp-ups will determine post-listing performance.
This is less about short-term listing pop…
and more about whether Malaysia can support a second large-cap healthcare champion.
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