Sunway Healthcare Growth Outlook Largely Priced In — Market Talk

Sunway Healthcare is expected to deliver a 23.6% compound annual growth rate in earnings for 2025-2028, driven by brownfield expansion projects and higher patient intensity, CIMB Securities analyst Chun Sung Oong says in a note. The healthcare service provider plans to add 477 beds by 2028, bringing total capacity to 2,422. Sunway Healthcare could benefit from strong integration with parent Sunway's ecosystem, including township, hospitality and education assets, which would support patient traffic and medical tourism, he says. However, Oong reckons the stock's 29% gain since its initial public offering has largely priced in the earnings potential. CIMB initiates coverage with a hold rating and a target price of 1.88 ringgit. Shares are 1.6% higher at 1.89 ringgit. (yingxian.wong@wsj.com)