Raffles Medical’s 1Q18 PATMI is in line with our expectation. We note that its share price has run up, after its 4Q17 results. Downgrade to SELL (from Neutral), with an unchanged SGD1.02 TP offering a 11% downside, as we think headwinds still lie ahead. Although 2H is seasonally stronger than 1H, we think it would be offset by higher costs when its hospital in Chongqing, China commences operations. We also expect to see a dip in earnings in FY19 when Raffles Medical Shanghai opens, while its Chongqing hospital would still be in a ramping-up phase.
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Raffles Medical Group booked a FY17 PATMI of SGD70.8m, ie slightly below our estimate. This was from a slower-than-expected turnaround in MCH Holdings, a decline in its healthcare services revenue, as well as a longer-than-expected rent-free period for its Holland V Medical Centre. We trim FY18-19F earnings by 5-10% respectively, as existing headwinds still prevail. Stay NEUTRAL, with a SGD1.02 TP (from SGD1.10, 7% downside).
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Raffles Medical recorded another flat quarter. 3Q17 PATMI came in at SGD16.4m (+1% YoY). However, given that its share price has dropped 18% since the poor set of results last quarter, we upgrade our recommendation to NEUTRAL (from Sell) with an unchanged DCF-derived TP of SGD1.10 (4% downside). The Singapore healthcare market is rather matured. As such, the timeline to the turnaround of the new Chinese hospitals is the key swing factor to its future earnings.
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RHB Singapore Results Review
2 May 2018
$Raffles Medical(BSL.SI)
Not Ripe Yet
Raffles Medical’s 1Q18 PATMI is in line with our expectation. We note that its share price has run up, after its 4Q17 results. Downgrade to SELL (from Neutral), with an unchanged SGD1.02 TP offering a 11% downside, as we think headwinds still lie ahead. Although 2H is seasonally stronger than 1H, we think it would be offset by higher costs when its hospital in Chongqing, China commences operations. We also expect to see a dip in earnings in FY19 when Raffles Medical Shanghai opens, while its Chongqing hospital would still be in a ramping-up phase.
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RHB Singapore Results Review
27 February 2018
$Raffles Medical(BSL.SI)
Lacklustre Outlook Due To Prevailing Headwinds
Raffles Medical Group booked a FY17 PATMI of SGD70.8m, ie slightly below our estimate. This was from a slower-than-expected turnaround in MCH Holdings, a decline in its healthcare services revenue, as well as a longer-than-expected rent-free period for its Holland V Medical Centre. We trim FY18-19F earnings by 5-10% respectively, as existing headwinds still prevail. Stay NEUTRAL, with a SGD1.02 TP (from SGD1.10, 7% downside).
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RHB Singapore Results Review
31 October 2017
$Raffles Medical(BSL.SI)
Uninspiring Set Of Results
Raffles Medical recorded another flat quarter. 3Q17 PATMI came in at SGD16.4m (+1% YoY). However, given that its share price has dropped 18% since the poor set of results last quarter, we upgrade our recommendation to NEUTRAL (from Sell) with an unchanged DCF-derived TP of SGD1.10 (4% downside). The Singapore healthcare market is rather matured. As such, the timeline to the turnaround of the new Chinese hospitals is the key swing factor to its future earnings.
Read more...
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