IHH Healthcare Berhad (IHH) demonstrated its commitment to sustainability efforts, according to reports by Kenanga Investment Bank (Kenanga). The healthcare giant unveiled its "Care. For Good" initiative, which is integral to its sustainable growth, focusing on patients, people, the public, and the planet, forming the backbone of its Environmental, Social, and Governance (ESG) roadmap.

Kenanga maintained its OUTPERFORM rating on IHH, reaffirming a target price of RM7.00. The bank cited IHH's dedication to sustainability and the positive outlook from its recent ESG dialogue as key factors in its assessment.

IHH has implemented several initiatives under its "Care. For Good" aspiration, including the Value-Driven Outcomes (VDO) programmes to improve patient care and cost efficiency. The healthcare provider aims to achieve 90% of VDO at or above international benchmarks for 226 indicators across 8 VDO procedures by 2025, reflecting its focus on patient empowerment and clinical performance.

In the People pillar, IHH is striving to become the employer of choice in private healthcare by 2025, with initiatives to achieve equal gender representation in leadership roles and support employee well-being. These efforts are reinforced by structured initiatives at various organisational levels, data analytics to address system gaps, and specialised mentoring support for new nurses.

IHH's Public pillar includes the Antimicrobial Stewardship Programme (AMS) to prevent antimicrobial resistance (AMR) and broadening access to quality healthcare for underserved communities. This includes partnerships for medical treatments and surgeries for cancer patients and those with other critical conditions.

In the Planet pillar, IHH is taking proactive measures to reduce its carbon footprint, aiming to transition all its Malaysia hospitals to solar power by 2025. With solar panels already installed in 8 of its 17 hospitals, IHH is leading in renewable energy in private healthcare and is on track to achieve Net-Zero carbon emissions by 2050.

The analyst expects IHH's revenue per inpatient growth to be 12%-16% in 2024, with inpatient throughput growth of 9%-12% and bed occupancy rates (BOR) of 65%-73%. The growth factors include increased revenue intensity from more acute cases, medical tourists, and new bed additions as staff shortages ease.

The Bank's positive stance on IHH's ESG initiatives and its maintained forecasts underscore the healthcare provider's bright prospects. IHH's market position in Malaysia, Singapore, Türkiye, and Greater China, coupled with its pricing power and inelastic demand for healthcare, solidifies its potential for sustained growth.