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28
Statement to Shareholders
Annual Report
2012
KPJ Healthcare Berhad
demand for pathology and laboratory services.
These activities grew in tandem with the
increase in revenue from hospitals within the
Group.
While our more established operations in
Malaysia are faring well, it is still early days
for our hospitals in Indonesia and Aged Care
Facility Services segments in Australia which
are new to the Group. While it will take some
time for these two business segments to
get up to speed, we will do the necessary
to optimise their operations so that they
contribute to the Group in a more significant
manner further down the road.
While KPJ continued to create positive
Economic Value Added (EVA) of 63.17
million in 2012, this was a 19% or RM14.67
million decrease over the RM77.84 million
created in 2011. The lower EVA, however
is justified given the investments made into
new developments, expansion projects and
acquisition during 2012, all of which augur
well for the Group’s long-term growth.
ROBUST SHAREHOLDER VALUE
CREATION
Dividend Payments
While the Group does not have a formal
dividend policy, for the past three years, we
have been declaring a quarterly dividend of
between 45% and 50% of our net profit.
In respect of the financial year ended 31
December 2012, the Group declared and paid
the following interim payments:
• On 31May 2012, the Directors declared
a first interim single tier dividend of 2.50
sen per share on 624,774,912 ordinary
shares amounting to RM15,619,374.
This dividend was fully paid on 13 July
2012.
• On 16 August 2012, the Directors
declared a second interim single
tier dividend of 2.50 sen per share
on 637,871,224 ordinary shares
amounting to RM15,946,780. This
dividend was fully paid on 5 October
2012.
• On 28 November 2012, the Directors
declared a third interim single tier
dividend of 2.50 sen per share
on 646,171,586 ordinary shares
amounting to RM16,154,289. This
dividend was fully paid on 15 January
2013.
• In concluding fiscal 2012, the Directors
are pleased to be able to declare a
fourth interim dividend of 4.0 sen per
share on 650,349,000 ordinary shares
amounting to RM26,013,960. This
dividend was fully paid on 18 April
2013.
All in all, in respect of financial year 2012,
KPJ will have paid out a total dividend of 11.5
sen per share amounting to RM73.7 million
in dividends (in comparison to a total dividend
payment of 12.2 sen per share amounting to
RM70 million in 2011).
Share Price Performance, Market
Capitalisation and Gearing
In 2012, KPJ delivered a robust performance
in the securities market. Our shares opened
at RM4.63 on 2 January 2012 and continued
to climb over the subsequent months to hit a
high of RM6.36 on 17 July 2012 translating
into significant returns to shareholders. By the
close of the market on 31 December 2012,
our stock price stood at RM5.74 which gave
shareholders who held our stock at the start
of 2012, a 22% capital appreciation.
Segmental Financial Highlights
The bulk of the Group’s revenue in 2012 was
derived from the Malaysian operations which
contributed 89% of total revenue. Revenue
from domestic operations rose 9% year-on-
year (YoY) to RM1.87 billion from RM1.72
billion previously on the back of positive
earnings growth from KPJ hospitals in
Malaysia even as they implemented capacity
expansion and introduced new services.
Revenue from the Group’s newer Malaysian
hospitals also contributed to our higher
revenue in 2012.
KPJ hospitals in Indonesia made strong
strides forward, turning in a 92% hike in
revenue to RM22.1 million in 2012 from
the RM11.5 million recorded in 2011. This
increase in revenue was attributable to the
increase in the number of patients during the
financial year.
The Aged Care Facility Services segment
recorded a revenue of RM30.8 million in
2012, a 367% increase in comparison to
the revenue of RM6.6 million in 2011. In the
previous year, however, Jeta Gardens had
only reported one month’s revenue as it was
acquired on 30 November 2011.
Revenue from the Ancillary Services segment
improved by 8% to RM689.6 million in 2012
from RM636.0 million previously. The higher
revenue came on the back of an increase
in activities relating to the marketing and
distribution of pharmaceutical, medical and
surgical products, as well as from increased
Prime Minister, YAB Dato’ Sri Najib Tun Razak announcing the development of Economic Transformation
Programme (ETP).