Sunway Healthcare: Diagnosing An Expansionary Phase

Sunway Healthcare is one of the largest private hospital groups in Malaysia. It also provides services covering the full lifecycle of care from primary care up to senior living. The Group has a vision to become one of the leading players in Southeast Asia, excelling in clinical outcomes, patient satisfaction, innovation and technology. Its flagship hospital is Sunway Medical Centre (SMC) Sunway City, which commenced operations in November 1999.

Sunway Healthcare

Since then, it has added four other tertiary hospitals with a total combined licensed bed count of 1,805.

“We value Sunway Healthcare using the EV/EBITDA methodology. At 20-23x FY27F EV/EBITDA, we derive a valuation of RM1.35 to RM1.55 per share.

“This is at a premium to Malaysia’s peer valuation of 14-19x EV/EBITDA but we believe this is justifiable given its market leadership with a solid expansion plan, extensive healthcare service offerings as well as being one of the fastest-growing private hospital groups in Southeast Asia,” says PIB.

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