Falling birth rates no barrier to Sunway's paediatric ambitions: HLIB

KUALA LUMPUR: Sunway Healthcare Holdings Bhd continues to expand its paediatric services at Sunway Medical Centre in Bandar Sunway, despite declining birth rates in the Klang Valley.

Hong Leong Investment Bank Bhd (HLIB) said the expansion was supported y two factors, namely rising healthcare spending per child, underpinned by higher household incomes, and potential for long-term patient retention.

It noted that the hospital believes demand for higher-quality healthcare could continue to grow despite declining birth rates, as families with fewer children may be willing to spend more on their healthcare needs.

The second factor lies in the long-term patient retention.

HLIB said establishing patient relationships from childhood creates opportunities to retain them as they transition into adulthood and later life, supporting long-term patient lifetime value.

Following HLIB's recent site visit, it noted that Sunway Medical Centre was ranked number one in Newsweek's World's Best Specialised Hospitals 2027 (Paediatrics) mainly attributed to its more comprehensive paediatric capabilities, supported by a dedicated children's tower.

"The hospital's position as a referral centre for complex paediatric cases further underscores its clinical capabilities," it said.

HLIB said Sunway Medical Centre's current paediatric capabilities reflect about three years of substantial investment in specialised human capital, dedicated facilities and subspeciality development.

"These investments create significant barriers to entry, as competing hospitals would require considerable time and capital to replicate the breadth and depth of its paediatric services."

HLIB maintained its "Hold" call on the stock with an unchanged target price of RM2.05.