KUALA LUMPUR: IHH Healthcare Bhd 's recent earnings results surprised to the upside on stronger-than-expected contribution from its business operations, say analysts.

       In FY21, the healthcare group recorded a core net profit of RM1.55bil, which was 117% higher year-on-year.

       According to RHB Research, the result was 105% of its full-year forecast and 103% of that of consensus.

       Commenting on the performance of the Singapore unit, RHB said the decline in revenue from lower inpatient volume was more than offset by sustained Covid-19 related revenues and the absence of a one-off bonus provision in the preceding quarter.

       "Contribution from Covid-19 related revenue is likely to stick for 1Q22F, given the recent spike in cases – although this is expected to taper off in the latter part of FY22," said the research firm.

       Post-results, RHB maintained its "buy" recommendation with an unchanged target price of RM7.35 as it awaited further clarity from the upcoming analyst briefing.

       Meanwhile, TA Securities Research said the group's core net profit beat its expectation at 110.7% of its full-year estimate.

       The research firm has also maintained its "hold" call and forecasts pending the analyst briefing. It currently has a target price of RM7 on the stock.

       "As we transit to a post-pandemic world, we believe that patient volumes will continue to grow in 2022 but contributions from Covid-19 services is expected to gradually decrease," it said.