MIKA - 1H25 results in-line, despite lower traffic

KBVS Update
Tuesday, 5 August 2025

MIKA - 1H25 results in-line, despite lower traffic
(Maintain BUY, with adjusted TP of IDR3,100)

Mitra Keluarga Karyasehat’ (MIKA) earnings grew 5.5% yoy/5.7% qoq in 2Q25 on higher tariffs (includes drugs) with better payer mix and costs management. As a result, MIKA’ 1H25 earnings came in-line with ours’ (48.6%) and cons’ (47.2%) expectation.

MIKA’ revenue still grew 6.8% yoy/1.5% qoq in 2Q25 on higher tariffs (includes drugs) and case intensity, despite with lower traffic of JKN patients and lower cases of dengue fever. Thus, MIKA’ revenue still grew 4.5% yoy to IDR2.56 tn in 1H25, on higher average revenue per inpatient (+12.8% yoy) and outpatient (+13.6% yoy), despite with lower traffic of JKN patients and lower cases of dengue fever, yoy. As a result, MIKA’ 1H25 revenue still came in-line with ours’ (46.3%) and cons’ (46.1%) expectation.

Thanks to higher tariffs (includes drugs) and case intensity with better payer mix, MIKA’ gross profit grew 9.1% yoy/3.2% qoq in 2Q25 with 110bps yoy/90bps qoq gross margin expansion. While, MIKA’ EBITDA grew 7.8% yoy/5.6% qoq in 2Q25 and EBITDA margin expanded by 40bps yoy/150bps qoq due to better costs management. All in all, MIKA’ gross, EBITDA and net margin expanded by 100bps yoy, 50bps yoy and 50bps yoy, respectively in 1H25.

After MIKA’ 1H25 results with the company’ updated topline guidance, we adjusted our MIKA ‘25F revenue (-3.8% from prior) and earnings (-2.6% from prior) as per our anticipation on the possibility of JKN patients’ traffic could continue to decline in 2H25F. Yet, we still expect MIKA’ revenue and earnings to grow by 9.3% yoy and 11.8% yoy, respectively in ‘25F with margins' expansion due to higher tariffs and case mix with better payer mix and costs management amidst 2 new hospitals’ opening in ‘25F.

Maintain BUY on MIKA with adjusted TP of IDR 3,100/share, which implies 21.4x ‘25F EV/EBITDA. Currently, MIKA is trading at 15.4x ‘25F EV/EBITDA or at -2stdev of its 5 years’ mean EV/EBITDA.

Regards,
Andre Suntono – KBVS Research Team