Expecting A Greater Performance in FY24E
Key Takeaways :
▪️MIKA booked a revenue of IDR4.3tn in FY23, reflecting a growth of 5.3% YoY. The gross profit improved by +2.5% YoY to IDR2.1tn, albeit a weakening operating profit at -10.0% YoY, following the increase in G&A expenses (+20.1% YoY) to IDR952.3bn in FY23 (vs IDR792.7bn in FY22). As a result, MIKA’s net profit slipped by -9.1% YoY to IDR916bn, with a NPM of 21.5% or declined by 340bps in FY23.
▪️MIKA is currently constructing Mitra Keluarga hospital in Sidoarjo, East Java, with a capacity of 200 beds and Kasih hospital in West Java possessing 100 beds. Both facilities are targeted to fully operate in FY25F. Furthermore, MIKA is expecting a ground-breaking establishment of new hospitals in Jabodetabek area in FY24E, thus a capex of ~IDR800bn-1tn is prepared for FY24E.
▪️MIKA also applies more veritable medical services to intensify its revenue, including: 1) MIKA established “Women and Children Clinic” facility in Mitra Keluarga Kemayoran; 2) Oncology and radio therapy for cancer treatment services in two hospitals, Mitra Keluarga Bekasi and Kenjeran East Java.
▪️We recommend a BUY rating for MIKA at a TP: IDR3,200, which implies PE and EV/EBITDA of 42.3x/25.9x in FY24E and 37.5x/23.1x in FY25F. Its stable financial position and strong brand positioning should serve as favorable growth drivers.
Disclaimer On
