IHH Healthcare Net Jumps Almost Fourfold After Turkey Expansion

IHH Healthcare Bhd. (IHH), Asia’s biggest hospitals operator, said fourth-quarter profit rose almost fourfold, boosted by first-time contributions from Turkey and one-time gains.

Net income surged to 195.9 million ringgit ($63 million), or 2.43 sen per share, in the three months ended December 31, from 52 million ringgit, or 0.95 sen per share, a year earlier, according to a stock exchange filing in Kuala Lumpur today. Revenue advanced 79 percent to 1.52 billion ringgit.

IHH, controlled by Khazanah Nasional Bhd. and Mitsui & Co., raised about $2 billion through an initial public offering last year in Kuala Lumpur and Singapore. It operates hospitals under brands including Gleneagles and Mount Elizabeth in Asia and last year expanded into Europe by acquiring Acibadem Saglik Hizmetleri & Ticaret AS, Turkey’s largest hospital group.

“We see opportunities in the region for the year ahead and will continue to build on our past year’s performance and are looking for new opportunities in countries like Vietnam, Turkey and Abu Dhabi,” IHH Chairman Abu Bakar Suleiman told reporters in Kuala Lumpur today.

IHH, the world’s second-biggest health-care provider by market value, has risen 22 percent from its 2.80 ringgit offer price in July, closing unchanged at 3.41 ringgit in Kuala Lumpur today ahead of the earnings announcement.

It’s rated the equivalent of buy by nine out of 23 analysts whose ratings are compiled by Bloomberg. Five recommended selling the stock.

Quarterly earnings were boosted by exceptional items including a 31.6 million-ringgit valuation gain on its investment properties and a 41.7 million ringgit write-back on an earlier impairment loss, the filing showed.

To contact the reporter on this story: Manirajan Ramasamy in Kuala Lumpur at rmanirajan@bloomberg.net

To contact the editor responsible for this story: Barry Porter in Kuala Lumpur at bporter10@bloomberg.net

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