Hong Leong Investment Bank Maintains BUY on IHH Healthcare, Raises Target Price to RM10.00 Amid Strong Cancer, Renal Care and Medical Tourism Growth

Hong Leong Investment Bank Bhd (HLIB) has reiterated its BUY call on IHH Healthcare Bhd, increasing its target price to RM10.00 from RM9.43, reflecting a 13.6% capital upside and an expected total return of 14.9%. This update comes as IHH Healthcare continues to demonstrate strong growth prospects, particularly in the area of medical tourism across markets such as Malaysia, Singapore, Turkey, India, and China.

The stock was last traded at RM8.80, and HLIB sees significant upside potential in IHH Healthcare due to its continued leadership in cancer care and renal treatment. The healthcare group’s reputation, bolstered by its facilities in strategic locations, positions it strongly within the growing global medical tourism industry.

Strong Positioning in Medical Tourism and Cancer Care

During a series of site visits to Pantai Hospital Kuala Lumpur (PHKL) and Prince Court Medical Centre (PCMC), HLIB highlighted PHKL’s role as a leader in private cancer care in Malaysia. With the growing demand for specialized healthcare, these hospitals serve as key attractions for medical tourists seeking high-quality treatment in Asia. PHKL is also expanding its clinical trial system across IHH’s Malaysian network, which will likely enhance its reputation as a destination for both domestic and international patients seeking cutting-edge cancer treatment.

Medical tourism is increasingly becoming a vital part of IHH Healthcare’s growth strategy. As tourists flock to destinations with world-class medical facilities, IHH Healthcare’s strong positioning in the region’s medical tourism market will likely continue to drive traffic, contributing significantly to its revenue streams. As one of the few Asian providers offering comprehensive cancer, cardiac, and orthopedic care, IHH Healthcare is uniquely positioned to capitalize on the growing demand for medical tourism services.

Medical Tourism Driving Regional Growth

The resilient performance of IHH Healthcare’s hospitals, despite challenges like the ringgit’s strength and a 6% sales and service tax, underscores the inelastic demand for essential healthcare services like cancer treatment. The medical tourism sector has proved to be resilient and profitable, with international patients increasingly seeking high-quality treatments in cost-effective countries such as Malaysia, India, and Turkey. This trend contributes to the region’s medical tourism growth, with IHH Healthcare leading the charge through its diverse offerings and premium facilities.

Moreover, the upcoming Sunway Healthcare IPO and Malaysia’s Year of Medical Tourism 2026 present new opportunities for IHH Healthcare to strengthen its market share in the growing medical tourism market. As IHH’s Island Hospital was recently recognized as the Flagship Medical Tourism Hospital 2025, the company’s growing role in medical tourism becomes even more evident, further cementing its status as a key player in the global medical tourism industry.

Economic Impact of Medical Tourism on IHH Healthcare’s Growth

HLIB also pointed out that medical tourism offers significant economic benefits for IHH Healthcare, as the sector brings foreign revenue and strengthens its market presence across various countries. By attracting international medical tourists, IHH is contributing to the growth of regional economies, particularly in areas that focus on high-quality healthcare at competitive prices.

Medical tourism also enhances IHH’s relationships with local farmers, artisans, and performers, as these sectors benefit from increased tourist spending. Whether it’s the local produce used in hospitals or the tourism-related services around medical facilities, the economic impact of medical tourism helps promote broader economic growth and job creation in the healthcare and tourism industries.

Forecast Adjustments and Catalysts for Future Growth

While HLIB has trimmed its FY25-27 forecasts by 3% to 4.6%, mainly due to currency translation effects, the bank remains optimistic about IHH’s long-term prospects, especially within the medical tourism sector. The company’s Turkish operations remain strong, and upcoming foreign fund inflows and Malaysia’s Year of Medical Tourism in 2026 are expected to provide positive catalysts.

Furthermore, the ongoing development of the medical tourism sector within IHH Healthcare is a key growth driver, making it a compelling option for investors seeking exposure to the expanding global healthcare and tourism markets.

IHH Healthcare’s Future in Medical Tourism

IHH Healthcare’s ongoing expansion into new medical tourism markets and its robust portfolio of specialized medical services give it a competitive edge in the growing medical tourism sector. As the aging population and increased healthcare awareness across Asia and the world drive demand for top-tier healthcare services, IHH’s growth in medical tourism will continue to be a major factor in its overall performance.

HLIB’s decision to maintain a BUY rating is based on IHH’s strong growth prospects, particularly in medical tourism and specialized healthcare services. The company is well-positioned to leverage regional growth, providing affordable and high-quality care to both domestic patients and international medical tourists.

Medical Tourism as a Key Driver of IHH Healthcare’s Growth

With its strong positioning in medical tourism, particularly in cancer and renal care, and its ongoing expansion in Southeast Asia and Turkey, IHH Healthcare is set to thrive in the growing global medical tourism industry. By offering world-class care at competitive prices, the company is attracting an increasing number of medical tourists to its hospitals, further solidifying its role as a global healthcare leader.

As HLIB continues to highlight the positive catalysts for IHH Healthcare, including the Sunway Healthcare IPO and Malaysia’s Year of Medical Tourism 2026, the company’s long-term prospects remain strong. The growth of medical tourism is set to play a pivotal role in IHH’s continued success, positioning it as a key player in the future of global tourism and healthcare services.

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