Sunway Healthcare Holdings Bhd has retained HOLD calls from HLIB and CIMB Securities, with target prices of RM2.05 and RM2.10 respectively, as analysts said earnings momentum remains intact but much of the upside has been priced in. CIMB raised its target from RM1.88 while HLIB kept its unchanged.
HLIB said SunMed’s 1HFY26 core profit of RM130.4 million was within expectations, accounting for 43% of its full-year forecast. It expects earnings to strengthen in the second half, supported by seasonal demand, better operating leverage at Sunway Medical Centre Penang and growing contributions from its Damansara and Ipoh hospitals.
CIMB Securities said 2Q26 core profit rose 75% year-on-year to RM80 million as revenue climbed 30% to RM673 million. The stronger performance was supported by higher patient volumes, improved revenue per patient and a wider EBITDA margin, while the effective tax rate fell to 16%.
Patient activity continued to build, with inpatient admissions rising 19%, outpatient visits 18% and daycare patients 26% year-on-year. The combined EBITDA contribution from the Damansara and Ipoh hospitals more than doubled quarter-on-quarter to RM9.4 million.
CIMB said SunMed’s licensed bed capacity had reached 1,886 by August, with the group targeting 2,443 beds by 2028 through brownfield expansion. HLIB expects FY26 core profit to rise 20.5% as operating leverage improves.
Despite the growth outlook, CIMB said SunMed’s valuation already reflects much of its future earnings upside, supporting its HOLD call.
As of 10.33 am, the stock price slightly increased by nearly 1% to RM2.12.
