KPJ Healthcare Berhad's (KLSE:KPJ) Intrinsic Value Is Potentially 26% Above Its Share Price
Jan 31
Malaysian (KLSE) Healthcare Sector Analysis
UpdatedFeb 03, 2023
DataAggregated Company Financials
Companies28
- 7D-0.5%
- 3M-0.5%
- 1Y-31.1%
- YTD-1.3%
The Healthcare industry has been flat over the last week, but Top Glove Corporation Bhd has lost 7.1%. Unfortunately though, the industry is down 31% over the past 12 months. Looking forward, earnings are forecast to grow by 21% annually.
Sector Valuation and Performance
Has the Malaysian Healthcare Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 03 Feb 2023 | RM84.3b | RM41.6b | RM3.2b | 18.4x | 26x | 2x |
| Sun, 01 Jan 2023 | RM87.8b | RM41.6b | RM3.3b | 19.4x | 26.8x | 2.1x |
| Tue, 29 Nov 2022 | RM85.5b | RM42.4b | RM3.9b | 19.7x | 21.8x | 2x |
| Thu, 27 Oct 2022 | RM84.0b | RM46.9b | RM6.0b | 11.7x | 13.9x | 1.8x |
| Sat, 24 Sep 2022 | RM79.5b | RM46.9b | RM6.0b | 14x | 13.2x | 1.7x |
| Mon, 22 Aug 2022 | RM88.9b | RM49.3b | RM7.4b | 15.7x | 12x | 1.8x |
| Wed, 20 Jul 2022 | RM93.2b | RM54.3b | RM10.6b | 13.6x | 8.8x | 1.7x |
| Fri, 17 Jun 2022 | RM90.4b | RM54.1b | RM10.4b | 13.4x | 8.7x | 1.7x |
| Sun, 15 May 2022 | RM103.7b | RM57.9b | RM13.5b | 13.4x | 7.7x | 1.8x |
| Tue, 12 Apr 2022 | RM108.3b | RM60.8b | RM15.7b | 14.4x | 6.9x | 1.8x |
| Thu, 10 Mar 2022 | RM103.5b | RM64.6b | RM18.5b | 12.8x | 5.6x | 1.6x |
| Sat, 05 Feb 2022 | RM113.8b | RM66.7b | RM20.6b | 15.8x | 5.5x | 1.7x |
| Mon, 03 Jan 2022 | RM126.6b | RM66.7b | RM20.6b | 15.5x | 6.2x | 1.9x |
| Wed, 01 Dec 2021 | RM127.3b | RM68.9b | RM22.6b | 17.8x | 5.6x | 1.8x |
| Fri, 29 Oct 2021 | RM121.8b | RM66.5b | RM22.5b | 20.8x | 5.4x | 1.8x |
| Sun, 26 Sep 2021 | RM124.2b | RM64.6b | RM21.7b | 24.3x | 5.7x | 1.9x |
| Tue, 24 Aug 2021 | RM135.5b | RM65.6b | RM22.3b | 24.8x | 6.1x | 2.1x |
| Wed, 30 Jun 2021 | RM137.0b | RM65.6b | RM22.3b | 26.9x | 6.1x | 2.1x |
| Sat, 03 Apr 2021 | RM144.8b | RM55.1b | RM16.4b | 26x | 8.8x | 2.6x |
| Tue, 05 Jan 2021 | RM180.5b | RM45.9b | RM9.9b | 30x | 18.2x | 3.9x |
| Fri, 09 Oct 2020 | RM221.4b | RM38.5b | RM4.7b | 28.9x | 46.7x | 5.7x |
| Thu, 02 Jul 2020 | RM167.2b | RM34.8b | RM2.1b | 23.5x | 80.7x | 4.8x |
| Sun, 05 Apr 2020 | RM102.4b | RM34.8b | RM1.5b | 18.4x | 66.9x | 2.9x |
Price to Earnings Ratio
56.1x
Current Industry PE
- Investors are relatively neutral on the Malaysian Healthcare industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 27.2x.
- The 3-year average PS ratio of 2.9x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have grown 21% per year over the last three years.
- Revenues for these companies have grown 6.3% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Malaysian Healthcare sector?
| MY Market | 0.20% | |
| Healthcare | -0.46% | |
| Healthtech | 8.70% | |
| Healthcare Services | 1.13% | |
| Pharma | 0.47% | |
| Biotech | 0% | |
| Life Sciences | -2.61% | |
| Medical Equipment | -5.89% | |
Industry PE
- Investors are most optimistic about the Healthcare Services industry which is trading above its 3-year average PE ratio of 2.4x.
- Analysts are expecting annual earnings growth of 10.6%, which is lower than the prior year's growth of 43.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Medical Equipment industry, expecting annual earnings growth of 63% over the next 5 years.
- This is better than its past earnings decline of 92% per year.
- In contrast, the Pharma industry is expected to see its earnings grow by 2.9% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| IHH IHH Healthcare Berhad | RM6.03 | 1.3% +RM704.5m | -6.7% | PE30.6x | |
| KOSSAN Kossan Rubber Industries Bhd | RM1.12 | 3.7% +RM102.1m | -38.8% | PE7.6x | |
| KPJ KPJ Healthcare Berhad | RM1.02 | 2.0% +RM86.9m | -1.0% | PE36.3x | |
| FOCUSP Focus Point Holdings Berhad | RM1.29 | 21.7% +RM75.9m | 84.3% | PE12.3x | |
| HONGSENG Hong Seng Consolidated Berhad | RM0.19 | 5.6% +RM51.1m | -86.3% | PE10x |
