IHH Healthcare Bhd’s recovery trajectory is on track and the company’s intention to rationalise non-performing assets (NPA) should boost its return on equity (ROE) enhancement strategy profitability.
RHB Research says, “IHH has been relooking at its portfolio to potentially divest its NPA to reduce its equity base while lifting profitability, such an exercise could arise in its India unit, where NPAs could be disposed of and capital reallocated to Fortis for future growth.”
“IHH is rethinking its clinical offerings to prioritise shorter gestation periods rather than a variety of specialities, typical of a general hospital.”
Meanwhile, the research firm says in a statement today, “IHH could achieve this through further partnerships with existing incumbents with specialised offerings.”
Elsewhere, IHH aims to grow organically before deploying capital for acquisitions that complement it in areas where it already has a presence, according to RHB Research, which focuses on recovery and brownfield expansion.
Acibadem, IHH’s healthcare benchmark in Turkey, Central and Eastern Europe, plans to expand its business by using organic growth and potential mergers and acquisitions to expand its existing platform, Acibadem City Clinic (M&A).
