HEAL expands hospital network in 2024
Medikaloka Hermina (HEAL) plans to add 4 new hospitals, which will be inaugurated in stages in 2024. The new hospitals are Hermina Pasuruan (End of May), Hermina Madiun Hospital (Jul), Hermina Nusantara IKN (Late Jul – Aug), and Hermina PIK 2 Hospital. HEAL also targets to increase the number of beds to 7,700 from 6,618 in 2023. The company has allocated IDR 2T in capex this year, intended to construct and expand old and new hospitals, land acquisition, and medical equipment. Meanwhile, in terms of financials, HEAL targets IDR 6.7T revenue (+18% yoy) and IDR 1.9T net profit (+335% yoy). (Kontan)
What we think: HEAL’s 1Q24 revenue grew 26.2% yoy to IDR 1.7T, driven by growth in inpatient days (+34.5% yoy) and outpatient visits (+18.1% yoy). Its net profit also grew 75.6% yoy to IDR 190.9B. Gross and net margins expanded to 39.2% (+180bps yoy) and 11.2% (+320bps yoy).