IHH Healthcare is well-positioned for accelerated growth in the second half of FY24, driven by increasing revenue intensity and rising demand across its operations. The company anticipates a boost from higher yield services in Singapore, the return of medical tourists in Türkiye, and post-election effects in India.

IHH remains optimistic, maintaining a target price of RM7.73 and an OUTPERFORM rating. Despite its share price lagging behind peers like KPJ and Sunway, IHH trades at a 12x EV/EBITDA valuation discount compared to the 20x paid by Columbia Asia for Ramsay Sime Darby Health Care. This valuation gap is expected to close given IHH's strong market position and profitability.

Analysts have highlighted several key growth areas for IHH. In Singapore, staff shortages are gradually easing, leading to improved bed occupancy rates and revenue per inpatient. The company is also expanding its offerings with the new Proton Therapy Centre at Mount Elizabeth Hospital, which has seen increased usage due to high demand. In Türkiye and Europe, IHH is recovering from lower contributions in the first half of FY24, with foreign patient revenues rising and operational improvements expected in the second half. In Malaysia, IHH plans to add 1,300 beds over the next five years, with a new 200-bed hospital in Sarawak to support local and medical tourism needs. In India, the focus on cost efficiency and high-yield case mixes is anticipated to drive margin improvements despite temporary setbacks from recent elections.

The company is also expanding its presence in Hong Kong China and Greater China, with a hub-and-spoke model in Shanghai aimed at increasing patient volumes and improving operational efficiencies. IHH's strategic investments in AI and other technologies are expected to enhance patient care and operational performance.