Raffles Medical Group - UOB Kay Hian 2023-02-28: 2022 Exceptional Year In Singapore, China Next

• Raffles Medical reported a record-high PATMI of S$143.5m (+70.5% y-o-y) in 2022, driven by better cost efficiency and margins.
• With the removal of COVID-19 measures in Singapore, healthcare services outperformed as more patients returned to clinics. The domestic hospital segment is set to recover from the return of elective surgeries and foreign patients.
• - Read this at SGinvestors.io -
• Maintain BUY rating on Raffles Medical with a higher target price of S$1.85.

Record year from COVID-19.

• Raffles Medical (SGX:BSL) announced record 2022 revenue and PATMI of S$766.5m (+5.9% y-o-y) and S$143.5m (+70.5% y-o-y), forming 99.0% and 107.2% of our full-year forecasts respectively.
• - Read this at SGinvestors.io -
• Backed by better cost control, deployment of manpower, along with lower inventories and consumables, operating profit grew 61.4% y-o-y as operating margins expanded 8.8ppt y-o-y. However, moving forward, we expect operating margins to contract slightly in 2023, dragged by higher inflationary cost push and an ongoing shortage of healthcare workers in Singapore.
• Similar to operating profit, PATMI surged above our expectations as net margins expanded 7.1ppt y-o-y.

Increased final dividend and robust balance sheet.

• Read more at SGinvestors.io.

Llelleythan Tan UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-02-28 SGinvestors.io

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