IHH Healthcare (IHH) has delivered a strong performance in the first half of FY24, with a 30% year-on-year increase in core net profit, reaching RM840 million. This robust growth was driven by higher revenue, improved yields, and a reduction in tax expenses. The company's 1HFY24 results were in line with expectations, reflecting solid revenue growth and operational efficiency.

Analysts at Kenanga, MIDF and RHB have updated their recommendations for IHH Healthcare, and all of them are positives. One analyst maintains an OUTPERFORM rating and raises its target price from RM7.00 to RM7.73, citing strong revenue performance and effective strategic execution. Another analyst also maintains a BUY call, increasing its target price to RM8.00, which represents a 27% potential upside from the current market price of RM6.29. This adjustment reflects the company's continued success in meeting healthcare demands and its expansion plans. Last stock broking house also reaffirms its BUY recommendation with a target price of RM7.35, based on consistent revenue growth and the company's ability to navigate cost pressures effectively.

In 1HFY24, IHH's revenue surged by 23%, driven by increased in-patient admissions and higher revenue per admission across all its key markets, including Malaysia, Türkiye, and India. Although Türkiye experienced a seasonal slowdown, overall performance remained strong, with EBITDA rising by 13% due to higher yields from acute cases.

Looking forward, IHH Healthcare is expected to continue its positive performance, bolstered by strategic initiatives such as expanding bed capacity by 33% by 2028 and addressing staff shortages in Singapore and Malaysia. The company is well-positioned to capitalise on returning international patients and growing healthcare demands.