- Raffles Medical (SGX:BSL)'s FY22 earnings beat on well-managed staff costs, at 117.6%/121.3% of our/consensus estimates on an 8.2% pt expansion in EBITDA margins.
- Management highlighted that the decline in staff costs was from right-sizing staffing across expanded operations in hospitals, clinics and the transitional care facility (TCF) in Connect@Changi (previously a COVID-19 treatment facility). This led to staff costs coming in at 37.9%/44.6% of 2H22/FY22 revenues despite historical average of above ~50%.
- - Read this at SGinvestors.io -
- As Raffles Medical pivots back to its core hospital and healthcare services business, we believe staff costs will revert to historical levels of ~50% of revenues, especially as Raffles Medical steps up operations in China after the border reopening.
- Raffles Medical (SGX:BSL)'s FY22 earnings beat on well-managed staff costs, at 117.6%/121.3% of our/consensus estimates on an 8.2% pt expansion in EBITDA margins.
- Management highlighted that the decline in staff costs was from right-sizing staffing across expanded operations in hospitals, clinics and the transitional care facility (TCF) in Connect@Changi (previously a COVID-19 treatment facility). This led to staff costs coming in at 37.9%/44.6% of 2H22/FY22 revenues despite historical average of above ~50%.
- Stepping down COVID-19-related services also meant an easing of manpower, as Raffles Medical was managing more than 2.8k permanent staff and 5k part-timers at its peak.
- As Raffles Medical pivots back to its core hospital and healthcare services business, we believe staff costs will revert to historical levels of ~50% of revenues, especially as Raffles Medical steps up operations in China after the border reopening.
- Raffles Medical saw revenue grow 5.9% to a record S$766.5m in FY22, supported by COVID-19 facilities, and the return of both local and foreign patients. Record revenue in FY22 is hard to top –
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
TAY Wee Kuang CGS-CIMB Research | https://www.cgs-cimb.com 2023-02-28
Read also CGS-CIMB's most recent report:
2023-11-07 Raffles Medical - A Confluence Of Headwinds In 3Q23.Previous report by CGS-CIMB:
2023-08-01 Raffles Medical - Likely A New Net Profit Run-Rate.Price targets by other brokers at Raffles Medical Target Prices.
Listing of research reports at Raffles Medical Analyst Reports.
Relevant links:
Raffles Medical Share Price History,
Raffles Medical Announcements,
Raffles Medical Dividends & Corporate Actions,
Raffles Medical News Articles
