MIKA - Expansion continues as a further commitment to Indonesian healthcare

KBVS Update
Wednesday, 24 June 2026

MIKA - Expansion Continues as A Further Commitment To Indonesian Healthcare
(BUY, with TP IDR2,840)

* Mitra Keluarga Karyasehat (MIKA) will open two new hospitals in 4Q26F, as its commitment to Indonesian healthcare. MIKA has spent around IDR257 bn in 1Q26, out of IDR1.0 tn capex for '26F, for hospital development and new medical equipment. MIKA will continue to focus and strengthen its Center of Excellence (CoE). Thus, maintained our ‘26F revenue, EBITDA and earnings growth for MIKA at 9.9% yoy, 10% yoy and 10.7% yoy, respectively in ‘26F on higher tariffs (includes drugs) and patients traffic with better case mix amidst El Nino, softer costs pressure and two new hospital openings in 4Q26F.

* Looking ahead, with El Niño starting in 2Q26F with its heatwave effects that are affecting public health, MIKA expects its revenue and net profit to reach IDR1.42 tn (+9.8% yoy/+4.5% qoq) and IDR384.3 bn (+16.9% yoy/+18% yoy).

* We also expect 1H26F earnings to reach IDR710.1 bn (+11% yoy), or around 47% of our ‘26F earnings on higher tariffs and patient traffic with better case mix amidst El Nino, and softer costs pressure. All in all, expect MIKA’ EBITDA and net profit margin to expand by 20bps yoy and 60bps yoy, in 1H26F.

* MIKA’ revenue and earnings reached IDR1.36 tn (+6.6% yoy/-2.3% qoq) and IDR326 bn (+4.8% yoy/-6.3% qoq), respectively in 1Q26, on higher tariffs (includes drugs) with better case mix, despite with higher costs and lower JKN patients’ traffic, which both still came in-line with ours and consensus’ expectation at 23%/22%.

* Maintained our ‘26F revenue and earnings for MIKA, with a BUY and TP of IDR2,840, implying 16x ‘26F EV/EBITDA. Now, MIKA is trading at 8.5x ‘26F EV/EBITDA or below -2 stdev of its 5 years’ mean EV/EBITDA.

Regards,
Andre Suntono - KBVS Research team