Raffles Medical Group - CGS-CIMB Research 2023-02-28: Scouting For Growth Beyond The Pandemic

• 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.
• - Read this at SGinvestors.io -
• 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/.

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 Dividend Payout Dates & Corporate Actions,
Raffles Medical News