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Health Management International Ltd – Three Things That Investors Should Know From Its Full-Year Results

Health Management International Ltd (SGX: 588) or HMI is a healthcare provider with a presence in Singapore, Malaysia and Indonesia.

It owns and operates the Mahkota Medical Centre in Malacca and Regency Specialist Hospital in Iskandar Malaysia, with total bed capacity of over 500. HMI also owns and operates HMI Institute of Health Sciences in Singapore, which provides a wide range of healthcare and emergency life support training services.

The company has recently announced its full-year result for FY17. Here, we will look at three pieces of information for a quick overview of its performance.

Overall result

Source: HMI FY17 Full Year Result Presentation

Full-year revenues grew, as a result of higher patient loads and average bill sizes at the healthcare provider’s two hospitals – Mahkota Medical Centre and Regency Specialist Hospital.

“As a result of the consolidation exercise, the Group recorded RM8.2 million in one-off costs related to professional fees and other costs.

Excluding the impact arising from the one-off professional fees, as well as the non-operational foreign exchange losses during the year, the Group’s core Profit After Tax and Minority Interests (PATMI) increased 40.3% year-on-year to RM32.1 million for FY2017.”

Revenue per patient

Source: HMI FY17 Full Year Result Presentation

From the above, we can see that revenue per patient for both in-patients and out-patients have grown in most of the quarters, up by an average of more than 6% during the year.

Patient load

Source: HMI FY17 Full Year Result Presentation

In addition to the growth in revenue per patient, patient load has improved in each of the last four quarters.

Moreover, foreign patients have continued to grow to account for a bigger share of the patient load, up on average of 1% in each of the last four quarters.

Conclusion:

Overall, a strong year for HMI with improvements across the board, offset by negative foreign exchange losses and one-off professional fees as a result of consolidation exercises.

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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.