Matrix Concepts Holdings Bhd’s investment in Mawar Medical Centre (MMC), one of the three largest private hospitals in Negeri Sembilan by bed capacity, is expected to enhance its earnings. RHB Investment Bank Bhd (RHB Research) noted that MMC will generate a steady stream of recurring income for the group, with even stronger growth anticipated following the completion of its ward expansion by the end of 2025. Matrix Concepts turned around the hospital after taking over in 2020. The medical centre’s revenue hit RM94.9 million in financial year 2024 (FY24) from RM32.8 million in FY21, while revenue per bed reached RM1.23 million from RM575,000. “MMC’s management plans to focus more on orthopaedics, cardiology, and gastroenterology going forward. Given the strong demand for healthcare services in Negeri Sembilan, the hospital is now undergoing an expansion. “Upon completion, MMC will have 109 beds from the current 88 beds. In the longer term, the 1.7-acre land adjacent to MMC will enable further expansion with an 8-story building and a potential bed capacity of 200 beds,” said the firm. RHB Research, however, said the potential implementation of a diagnosis-related group (DRG) system by the government may somewhat cap the upside potential to hospital operators’ earnings in the industry. “Over the medium term, we expect MMC’s profit margin to hover at around 13-15 per cent.“ RHB Research maintained a Buy on the stock with a higher target price of RM2.72.