Broker: Maybank Investment Bank Berhad
Date of Report: April 20, 2026
Excerpt from Maybank Investment Bank Berhad report.
Report Summary
- Stock: Sunway Healthcare (SUNMED MK)
- Action: BUY (Initiate Coverage)
- Target Price: MYR2.01 (12m Price Target, +10% upside)
- Key Idea: Sunway Healthcare is positioned at the cusp of a dual expansion cycle, targeting over 3,400 licensed beds by 2032 via brownfield and greenfield developments. It is Malaysia’s only major private healthcare group offering full-continuum, integrated care and is insulated from FX and macroeconomic risks as a pure Malaysia play.
- Highlights:
- Sector-leading FY25-28E EBITDA CAGR of 23% driven by rapid ramp-up of new hospitals (12-15 months vs industry average 3-5 years), high revenue intensity (CONGO specialties), and superior asset turnover.
- Expansion plan includes adding +644 beds by FY28E across existing hospitals and 3 new hospitals in Seremban Sentral, Iskandar Puteri, and Putrajaya by 2032.
- Premium valuation (implied FY27E EV/EBITDA of 28x) justified by younger asset base, strong operational execution, and visible long-term pipeline.
- Key risks include regulatory/policy changes, cost inflation, insurance payor pressures, and talent shortages.
- Implications: Investors are advised to accumulate on Sunway Healthcare for its robust earnings growth, proven execution of expansion, and defensive market positioning. The group’s pure domestic revenue base and medical tourism growth potential underpin its resilience and upside potential.
Above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website : https://www.maybank.com/investment-banking
