- Raffles Medical reported stable 1H23 PATMI of S$59.9m (+0.5% y-o-y), driven by better cost efficiency and margins despite lower overall core revenue (-9.5% y-o-y). Without COVID-19 related revenue, operating profit for healthcare services declined y-o-y as expected.
- - Read this at SGinvestors.io -
- Maintain BUY with a lower P/E-based target price of S$1.70.
Softer 1H23 results post-COVID-19 peak.
- For 1H23, Raffles Medical Group (SGX:BSL) posted lower overall revenue (-9.5% y-o-y, +3.9% h-o-h), forming 50% of our full-year forecasts and largely in line with our earlier expectations. Coming off its COVID-19 peak, the drop in revenue was expected as the group’s COVID-19 services tapered off.
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- Operating (-0.3ppt y-o-y) and PATMI margins (+1.6ppt y-o-y) were largely stable, backed by better cost control and deployment of manpower (staff cost as % of turnover decreased 4.1ppt y-o-y).
Manpower costs starting to bite.
- Read more at SGinvestors.io.
