At 10.25am, the counter added four sen to RM6.21, with 704,700 shares traded.

In a research note, CGS-CIMB Securities Sdn Bhd (CGS-CIMB) said IHH was looking for areas of potential growth after disposing the International Medical University, a sale that is expected to be completed by the first quarter of 2023.

The move will free up RM1.35 billion in capital for IHH, it said.

Additionally, IHH will be boosting its bed capacity with its acquisition of Ortopedia Hospital in Adana, Turkey, and the opening of a new floor at Fortis Hospital, Mulund in India.

“We think that such bolt-on acquisitions and organic expansion plans through the opening of new hospital wings to increase bed capacity could yield better results, compared to larger acquisitions or greenfield projects that would have higher integration costs and long gestation periods,” it said.

Hence, CGS-CIMB has reiterated its “add” call on IHH’s shares, albeit with an unchanged target price of RM8.07 on the back of stronger-than-expected contributions from new assets.

However, a downside risk would be disruptions to healthcare demand in Turkey, given the country’s hyperinflationary economy and margin pressure from rising staff costs.