KUALA LUMPUR: Hong Leong Investment Bank Bhd (HLB) has trimmed its earnings forecast for IHH Healthcare Bhd to reflect the impact of a stronger ringgit.

The firm said the currency strength would weigh on the group's operations in Singapore and India. As a result, it lowered its earnings estimates by three per cent for financial year 2025 (FY25), 4.2 per cent for FY26 and 4.6 per cent for FY27.

"The ringgit's movement against the Turkish lira remains within historical norms; hence, no adjustments are made to our forecast for its Turkish operations," it said in a note.

HLIB kept its "Buy" call on the stock with a higher target price of RM10, after rolling its valuation base year from FY26 to FY27.

"We view this as reasonable, given our expectation that the upcoming Sunway Healthcare Holdings IPO by the first quarter could further re-rate the sector, alongside potential foreign fund inflows into IHH amid ringgit strength, given its record-low foreign shareholding since December 2019.

"All in, we maintain our Buy call on IHH, underpinned by positive organic and inorganic growth prospects and its strong strategic positioning to capitalise on the silver economy megatrend, particularly population ageing," it added.

HLIB also highlighted that Pantai Hospital Kuala Lumpur is among the leaders in private cancer care, with its oncology centre using advanced medical technology.

While clinical trials are not revenue-generating, the firm noted that they significantly enhance the hospital's reputation, as participating doctors are frequently published in prestigious international medical journals.

"To create synergies within IHH's Malaysia network, Pantai Hospital plans to leverage its in-house system to expand clinical trial participation across other group hospitals, further strengthening IHH's reputation in cancer care," it said.