Raffles Medical Group - OCBC Investment 2022-11-02: 3Q22 Update, Recovery Underway

• Raffles Medical's 3Q22 profit after tax increased 62.1% y-o-y.
• 9M22 profit after tax of S$98.2m grew 57.3% y-o-y, driven by recovery in foreign patients seeking treatment in Singapore, while domestic elective surgeries have also seen some recovery.
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Raffles Medical issued a 3Q22 business update.

• In terms of top line, Raffles Medical (SGX:BSL)'s 3Q22 and 9M22 revenue of S$199.5m and S$581.8m increased 6.5% and 9.6% respectively.
• 3Q22 profit after tax was strong at S$38.3m which represented a 62.1% y-o-y increase. 9M22 profit after tax of S$98.2m increased 57.3% y-o-y.
• Management attributed the performance to recovery in foreign patients seeking treatment at Raffles Hospital while domestic residents have also started to resume their elective surgeries. Ongoing focus on cost management, optimising manpower deployment, lower inventory and consumables usage were also contributors to the solid 3Q22 performance.
• - Read this at SGinvestors.io -
• While Raffles Medical is optimistic that its China operations may benefit from potential future easing of travel restrictions, headwinds for the global economy will likely have some negative implications for the key markets the group operates in. Nevertheless, with only a quarter remaining, Raffles Medical is expected to close the year on a profitable note. The next update is expected in late February 2023.

Positive outlook maintained.

• Read more at SGinvestors.io.

OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2022-11-02 SGinvestors.io

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