RHB Singapore Results Review
2 May 2018
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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