KUALA LUMPUR (June 25): PMCK Bhd, a hospital operator en route to the Ace Market, is set to benefit from recent government initiatives to improve affordability to private healthcare, said Tradeview Research.

The Kedah-based firm is competitive with its price, with its procedures costing 40%–60% lower than charges at top private hospitals and just about 5% higher than government hospitals, the research house said in its IPO note. Tradeview recommends investors to subscribe to the IPO, with a target price of 27 sen.

“PMCK is poised for both revenue growth and margin expansion, driven by rising outpatient volumes, enhanced operational efficiency through increased equipment utilisation, and procedure rates aligned closer to ceiling prices,” Tradeview said.

Application for the IPO, priced at 22 sen apiece, will close on June 25 and the company scheduled for listing on July 9.

PMCK operates the Putra Medical Centre in Alor Setar, offering specialist consultant services, emergency care and clinical support with 40 consultants across 17 specialisations.

The company is now in the midst of a mixed development dubbed PMC Kulim, consisting of a 12-storey private medical centre, food court and hotel that will prioritise patients’ family members, on a site measuring over 141,000 square feet in Kulim, Kedah.

Tradeview is forecasting net profit for the 12 months ending April 2025 (FY2025) to fall 15% to RM12.7 million due to drop in patient numbers from floods in Alor Setar and the surrounding areas that hindered patient access, along with higher administrative costs to attract and retain talent.

Earnings, however, will recover to RM15.3 million in FY2026 and RM16.1 million in FY2027, according to its projections, driven by a return of patients for ongoing check-ups after the flood, and an increase in patient numbers from the government’s Hospital Services Outsourcing Programme.

The programme, which will see public hospitals referring patients to private healthcare facilities to reduce patient congestion and shorten waiting times, will boost PMCK’s revenue and margin growth in FY2026, as outsourced case volumes rise, Tradeview said.

In terms of valuations, PMCK will trade at nine times its enterprise multiples, below its much larger peers’ multiples of 13X-15x, which underscores a valuation discount despite its superior franchise in Kedah, the house noted.

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