Affin Hwang Investment Bank Research said healthcare companies under its coverage registered strong second quarter (2Q24) earnings, which were primarily driven by the hospital operators.

“We view the recent results positively, as an indication of the sector’s resiliency in earnings delivery and see limited risks in our earnings growth estimates.

“We expect 2H24 to see similar strength (if not more) when compared to 1H24 as there is a lesser seasonality impact from festivities in the latter,” said the research firm.

According to Affin Hwang, the hospital market in Malaysia is likely to grow at an annual growth rate of 5.95% from 2024 to 2029.

It said both IHH Healthcare Bhd and KPJ Healthcare Bhd are well on track to exceed such expectations.

“We have penciled in strong earnings growth for hospital operators in financial year 2024 (FY24) at 21% to 29%, which we believe is achievable despite the recent foreign exchange (forex) movements.”