KPJ Healthcare targets RM2b revenue in 2012

WEALTH PROTECTION

KPJ Healthcare Bhd (5878), the largest operator of private hospitals in Malaysia, has target its annual revenue to reach RM2 billion in 2012 through the continued expansion of operations throughout the country.

According to its chairman Tan Sri Muhammad Ali Hashim, the company will expand operations in the country either organically, by takeovers or building new hospitals.

"Through this continuous expansion of operations,we are confident of achieving an annual revenue of RM2 billion in 2012," he told reporters after the company's Extraordinary General Meeting (EGM) in Johor Baru yesterday.

He said the company had allocated RM150 million for capital expenditure this year and a similar amount would be spent next year for the same purpose.

The company's performance for the first nine months until September 30 2009 showed it had achieved revenue of RM1.07 billion and a net profit of RM80.57 million, compared to RM944.8 million and RM67 million for the same period last year.
KPJ, a subsidiary of the Johor Corporation owns 19 hospitals in Malaysia and two in Indonesia.

Muhammad Ali said the company had increased its network of hospitals with the JPJ Penang Specialist Hospital which began operations in August, while the Tawakal Hospital Kuala Lumpur which is moving to a new building, is expected to open in the first quarter of next year.

He also said that KPJ is building a new hospital in Klang, Selangor, which is expected to be open for operations in 15 months.

He said on December 16, the company had announced its move to take over the Maharani Specialist Hospital costing RM22 million in Muar, with another RM30 million being spent to develop it.

On its overseas operations, he said, the company's board of directors will re-evaluate investments in Bangladesh and Saudi Arabia following the current international financial crisis.

KPJ owns two hospitals in Indonesia, the RS Medika Permata Hijau and RS Bumi Serpong Damai. Both are located in Jakarta.

The company also operates a hospital in Padang, the Rumah Sakit Selasih, which was badly damaged by the recent earthquake which hit the region.

Earlier at its EGM, KPJ received approval from its shareholders to proceed with its proposed share split, bonus and warrant issue.

The proposed exercise involves the sub-division of one ordinary share of RM1.00 each in KPJ into two ordinary shares of RM0.50 each in KPJ, followed by a 1-for-4 bonus issue and a subsequent 1-for4-free warrant issue. - Bernama