Risk factor
Strong & resilient to price shocks
Profitability factor
Overvalued vs peers
About
KPJ Healthcare Berhad functions as an investment holding company, primarily engaged in the management and operation of an extensive network of specialized hospitals both within Malaysia and across international markets including Indonesia, Thailand, and Bangladesh. Beyond its core hospital services, the company offers a comprehensive array of healthcare and support provisions. These include advanced pathology and laboratory diagnostics, specialized ophthalmic medical and consultancy services, and essential maintenance for both hospital facilities and medical equipment. Its diverse portfolio also spans the operation of various care centers such as polyclinics, dialysis units, facilities for aged care, assisted living, post-natal recovery, and rehabilitation, alongside developing and managing retirement village complexes and ambulatory care centers. KPJ further contributes to healthcare education through its private university college for nursing and allied health professions. The company's commercial activities extend to retail pharmacies, the distribution and marketing of medical, pharmaceutical, and consumer healthcare products, and providing information technology solutions encompassing healthcare information systems and human resource management software rentals. Additionally, KPJ provides internal operational support services like human resource management, building maintenance, sterile processing, laundry, central kitchen operations, and training. Geographically, in addition to its hospital footprint, KPJ operates senior and assisted living care facilities in both Malaysia and Australia. The company was founded in Kuala Lumpur, Malaysia, in 1981, where its headquarters are located.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is overpriced on P/E, of fair value on EV/EBITDA,
Target Price
The average target price of 5878.KL is 3.6 and suggests 11.8% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendat