by Robert Yota
Publicly listed hospital chain PT Medikaloka Hermina (HEAL) has been able to maintain a stable occupancy rate amidst the ongoing COVID-19 pandemic, mainly due to the company’s decision to become one of the private hospitals that accept coronavirus patients.
According to Danareksa Sekuritas recent research, PT Medikaloka Hermina, better known as Hermina, has been keeping occupancy rate at around 50-60% since the start of COVID-19, a slight decrease from the typical 65%. Despite an uptick in the frequency of inpatient visits from coronavirus-related patients, Hermina has also experienced a decline in both non-elective inpatient visits and outpatient visits as people are becoming more cautious of visiting hospitals for non-critical treatments due to risk of infection.
Currently, an average of 300-400 beds per hospital is dedicated for COVID-19 patients, which is roughly 10% of Hermina’s total beds. As of now, all Hermina Hospital chains accept coronavirus patients; with 29 hospitals accepting only suspected patients (PDP) and 8 hospitals accepting both suspected and positive cases. In addition, it has around 10,000 rapid test kits and 5,000 PCR test kits as of now.
Last year, Hermina recorded a Rp 3.63 trillion in net sales, which were up by 18.7% (YoY) from Rp 3.058 trillion the previous year. Meanwhile, the company booked Rp 255 billion in net profit attributable to parent entity at the end of 2019, a 105.33% (YoY) increase from Rp 124 billion from 2018. Inpatient services still accounted as the majority source of sales for last year, contributing Rp 2.59 trillion or 71.35% of total sales, while outpatient services contributed Rp 1.54 trillion in 2019.
“For 2020 1Q, we still see positive revenue growth, which will continue until the third quarter as the company expects that the domestic condition will be back to normal. We are also still targeting a 30% EBITDA margin in the long run. Furthermore, there are no price increases for the drugs so far and the supply of medicine is still stable. There is only an additional cost of providing body protector equipment (PPE), but that cost can be passed on to the patients. In addition, there is no foreign exchange risk exposure as both our revenues and costs are in Rupiah” stated CFO Aristo Setiawidjaja in Danareksa Sekuritas research.