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IHH Healthcare has strong start to FY21 amid recovery in key markets, but tightened measures pose headwinds: UOB KH

Atiqah Mokhtar
Atiqah Mokhtar6/2/2021 04:50 PM GMT+08  • 2 min read
IHH Healthcare has strong start to FY21 amid recovery in key markets, but tightened measures pose headwinds: UOB KH
The tightening of Covid-19 movement measures is expected to curtail patient volumes in Malaysia and Singapore.
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IHH Healthcare’s 1QFY2021 ended March results were in line with UOB Kay Hian’s estimates, with analyst Philip Wong viewing it as a ‘strong start to the year’.

Nonetheless, he believes the recent resurgence in pandemic cases will pose headwinds for IHH in the near term. “[With] the tightened Covid-19 measures in both its key markets, Singapore and Malaysia, we expect a soft 2Q2021,” he writes in a June 1 report.

Wong notes that IHH’s 1Q2021 core profit grew 77.3% y-o-y but contracted 9.6% q-o-q. The better y-o-y profit was driven by top-line growth for both its Singapore and Malaysia markets due to a low base the previous year, a recovery in domestic volume and contribution from Covid-19-related services.

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