MIKA - FY25 results came above, on better case mix

KBVS Update
Tuesday, 07 April 2026

MIKA - FY25 results came above, on better case mix
(BUY, with adjusted TP IDR2,840)

* Mitra Keluarga Karyasehat’ (MIKA) earnings reached IDR348 bn (+27.2% yoy/-7.8% qoq) in 4Q25 on higher tariffs (includes drugs) with better case mix and costs management. As a result, MIKA’ FY25 earnings grew 19.1% yoy, which came above ours’ (106.5%) and cons’ (105.1%) expectation.

* MIKA’ revenue reached IDR1.39 tn (+10.5% yoy/-2.1% qoq) in 4Q25 on higher tariffs (includes drugs) with better case mix, despite with lower traffic of JKN patients. MIKA’ revenue from its inpatients in 4Q25 reached IDR912 bn (+12.7% yoy/-4.4% qoq). While, MIKA’ revenue from its outpatients grew 6.6% yoy/2.9% qoq in 4Q25. Thus, MIKA’ revenue grew 10.1% yoy in FY25, which came above ours’ (100.8%) and cons’ (100.2%) expectation.

* Thanks to higher tariffs (includes drugs) with better case mix and costs management, MIKA’ gross, EBIT, EBITDA and net margin expanded by 100bps yoy, 80bps yoy, 110bps yoy and 190bps yoy, respectively in FY25.

* We have incorporated MIKA' solid FY25 results and adjusted our MIKA ‘26F revenue (-2.2% from prior), EBITDA (-0.6% from prior), and net profit (+3.1% from prior) due to our anticipation of lower patient traffic as the possibility of JKN patients’ traffic could continue to decline further. All in all, we still expect MIKA’ revenue, EBITDA and earnings to grow by 9.9% yoy, 10% yoy and 10.7% yoy, respectively in ‘26F on higher tariffs (includes drugs) with better case mix and costs management amidst 2 new hospital openings in 4Q26F and the addition of new operational beds across several of its hospitals this year.

* Maintain BUY on MIKA with adjusted TP of IDR 2,840/share, which implies 16x ‘26F EV/EBITDA. Currently, MIKA is trading at 11.6x ‘26F EV/EBITDA or below -2stdev of its 5 years’ mean EV/EBITDA.

Regards,
Andre Suntono - KBVS Research team