KUALA LUMPUR: Sunway Healthcare Holdings Bhd's (SunMed) proposed expansion into Putrajaya presents a growth opportunity, supported by limited private hospital competition, according to Hong Leong Investment Bank Bhd (HLIB) Research.

Under the agreement, Sunway Healthcare Ventures Sdn Bhd, wholly owned by SunMed, and Tapak Senja Sdn Bhd, wholly owned by Putrajaya Holdings Sdn Bhd (PJH), will establish a 60:40 joint-venture company to construct and lease a multi-speciality tertiary private hospital.

"We view the development positively, as it aligns with SunMed's long-term strategy of expanding its network of tertiary hospitals while expanding its footprint in Putrajaya," it said in a research note.