Raffles Medical - Maybank Research 2023-10-04: Seeking New Growth Drivers; Acquires Ho Chi Minh City Hospital

• Raffles Medical (SGX:BSL) is acquiring a majority interest in American International Hospital (AIH) in Ho Chi Minh City for up to US$45.6m, to be fully funded by internal resources.
• The consideration took into account the valuation of the hospital asset by Savills Vietnam in Jul 2023. This follows a strategic partnership agreement it entered with My My Trading Services Company.
• - Read this at SGinvestors.io -
• Maintain BUY rating on Raffles Medical with a DCF-based target price of S$1.65 (LTG: 3%, COE: 8%).

Expands to fast-growing Vietnamese market

• Located in An Phu Ward, Thu Duc City, Ho Chi Minh, American International Hospital (AIH) is a purpose-built and fully equipped 120-bed tertiary hospital.
• - Read this at SGinvestors.io -
• Raffles Medical's management says AIH has seen steady growth in both outpatient and inpatient volumes since inception. That said, we do not expect any near-term contribution from this proposed acquisition, which may take at least 6-9 months to complete, subject to the fulfilment of certain conditions and relevant approvals.

Part of long-term strategy to diversify revenues

• Read more at SGinvestors.io.

Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2023-10-04 SGinvestors.io

---