- Raffles Medical (SGX:BSL)'s 1H23 revenue and PATMI were within expectation at 49%/42% of our estimates. The jump in healthcare services earnings was higher than expected. PATMI was up a modest 0.5% y-o-y to S$59mil.
- - Read this at SGinvestors.io -
- We maintain our FY23e forecast and BUY recommendation on Raffles Medical. Our DCF target price of S$1.76 is unchanged.
- We expect muted earnings growth post-pandemic until China builds up scale and operating leverage. The current shortfall of public hospital beds will provide additional revenue from the management of the Changi TCF.
The Positives
Resilient hospital services revenue and margins.
- - Read this at SGinvestors.io -
- Operating margins in 1H23 was 20.7%, higher than pre-pandemic levels of around 16%. Raffles Medical managed to lower staff costs by S$34mil or 17% y-o-y by reducing part-time workers. Meanwhile, 1H23 PBT margin is also supported by S$4.6mil improvement in net finance income.
Healthy free cash flow (FCF) with lower capex cycle.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2023-08-02
Read also Phillip's most recent report:
2024-08-01 Raffles Medical Group - Competition Will Cap Upside.
Previous report by Phillip:
2024-02-28 Raffles Medical - Lacklustre Near-Term.
Price targets by 4 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
