MENU

3 Things Investors Should Know from IHH Healthcare Bhd’s Latest 2016 Results

IHH Healthcare Bhd (SGX: Q0F)(KLSE:5225.KL) is an international provider of healthcare services in markets where it thinks the demand for quality healthcare is growing rapidly. Right now, the company is active in Asia (this includes Singapore and Malaysia), Central & Eastern Europe, the Middle East, and North Africa.

Asia remains the company’s largest market. Some of the company’s brands include Gleneagles, Mount Elizabeth, Pantai, ParkwayHealth and Acibadem.

In late February, IHH Healthcare reported its 2016 full year results. Let’s look at three useful pieces of information from the announcement:

1. The overall result

The following table shows some of the important numbers from the company’s income statement for the quarters and years ended 31 December 2015 and 2016:

IHH Healthcare 2016 income statement
Source: IHH Healthcare 2016 full year earnings release

Although IHH Healthcare managed to grow its revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) in 2016, its PATMI (profit after taxes and minority interests) is down.

The company’s revenue had increased due to organic growth in its existing healthcare assets and contributions from new hospitals that started operating.

Higher pre-operating and start-up costs incurred by the new hospitals and other exceptional losses – such as foreign exchange losses and impairment on investments – resulted in the lower profit.

2. Changes in inpatient admission volume

The charts below show the inpatient admission volumes for IHH Healthcare’s various businesses in the third and fourth quarters of 2015 and 2016.

IHH Healthcare 2016 inpatient admission volum
Source: IHH Healthcare 2016 full year earnings release

It’s obvious to see that IHH Healthcare’s four business segments all saw growth in inpatient volume in the fourth quarter of 2016 when compared to the same quarter a year ago.

3. Average revenue per inpatient admission

In the chart below, we can see IHH Healthcare’s average revenue per inpatient admission for each of its business segments in the third quarter and fourth quarter of 2015 and 2016 (numbers given are in ringgit):

IHH Healthcare 2016 revenue per inpatient admission
Source: IHH Healthcare 2016 full year earnings release

With the exception of Acibadem, all other segments in IHH Healthcare recorded growth in revenue per admitted patient in the fourth quarter of 2016.

If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's weekly investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.