MIKA - FY24 results: in-line, and to sustain growth in ‘25F

KBVS Update  
Monday, 14 April 2025

MIKA - FY24 results: in-line, and to sustain growth in '25F
(Maintain BUY; with TP: IDR3,400)

MIKA’ earnings grew 18.9% yoy/17.4% qoq in 4Q24 with its net margin reached 21.8% (+100bps yoy/+80bps qoq) due to higher tariffs and patients’ traffic with better payers mix and cost management amidst unpredictable weather. As a result, MIKA’ earnings reached IDR1.15 tn (+25.1% yoy) and came in-line with ours’ (98.6%) and cons’ (97.1%) expectation.

MIKA’ revenue grew 13.4% yoy/13.3% qoq in 4Q24 on higher tariffs and patients' traffic. MIKA' inpatient admissions and inpatient days grew 6.4% yoy and 4.8% yoy, respectively in FY24 with a 58% Bed Occupancy Rate (BOR) and an 8.4% yoy higher average revenue per inpatients’ day. MIKA’ outpatient visits grew 5.2% yoy in FY24 with a 10.1% yoy higher average revenue per outpatient’ visits. Thus, MIKA’ revenue reached IDR4.87 tn (+14.3% yoy) in FY24.  

MIKA had better payers mix in 4Q24 and FY24 due to higher patients’ traffic (non-JKN). Thus, MIKA’ gross profit reached IDR675 bn (+21.4% yoy/+21.3% qoq) and IDR2.62 tn (+22.9% yoy), in 4Q24 and FY24 on higher tariffs and patients’ traffic with better payers mix. While, MIKA’ EBIT and EBITDA reached IDR1.49 tn (+26.5% yoy) and IDR1.84 tn (+22.6% yoy), in FY24. All in all, MIKA’ gross, EBIT, EBITDA and net margin expanded by 380bps yoy, 290bps yoy, 250bps yoy and 200bps yoy, respectively in FY24.  

We slightly adjusted down our MIKA ‘25F revenue (-0.3% from prior) mainly on the current economic condition in Indonesia, but still expect MIKA to grow its revenue by 13.6% yoy on higher tariffs and patients’ traffic amidst unpredictable weather. All in all, we still expect MIKA’ earnings in ‘25F to grow by 14.7% yoy to IDR1.32 tn, which is -1.6% from prior as per our anticipation on higher finance and tax expenses.  

Maintain BUY on MIKA with TP of IDR 3,400/share, which implies 22.7x ‘25F EV/EBITDA, at its 5 years mean EV/EBITDA. We still expect MIKA’ earnings to grow by 14.7% yoy in ‘25F on higher tariffs and patients’ traffic (inpatients’ admission and outpatients’ visit) with better cost management and 2 new hospitals. Currently, MIKA is trading at 15x ‘25F EV/EBITDA or below -2stdev of its 5 years’ mean EV/EBITDA.

Regards,
Andre Suntono – KBVS Research Team