- Raffles Medical (SGX:BSL)’s 3Q23 performance moderated more than expected after delivering an exceptionally stellar year in FY2022, which forms a high base.
- 3Q23 PAT fell by 67% y-o-y to S$12.4m and 9% below that of 3Q2019. 9M23 PAT fell 26% y-o-y to S$72.8m, making up 53% of our FY23F estimates.
Cost inflation, gestation losses from China continue to weigh on performance
- - Read this at SGinvestors.io -
- The standalone vaccination centres have been discontinued and there has been a drop in COVID tests as we return to normalisation.
- In addition, RafflesHealthInsurance (RHI) registered higher claims in 3Q23.
- Operationally, Raffles Medical’s contract to manage the Transitional Care Facilities (TCF) at Expo has been extended to Feb 2025. However, management expects profit will likely be less now, given that the tenders were a lot more competitive.
- - Read this at SGinvestors.io -
- Nevertheless, the gestation losses of the two China hospitals (RafflesHospital Chongqing and RafflesHospital Shanghai) are within expectations.
- As the ramp-up of the hospitals were disrupted by the COVID-19 pandemic, management expects the ramp-up of both hospitals to resume this year, with ~S$10m of EBITDA losses at each hospital, and targets potential breakeven by year 3.
Maintain HOLD rating but lower target price to S$1.00.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Rachel TAN DBS Group Research | https://www.dbs.com/insightsdirect/ 2023-11-07
Read also DBS's most recent report:
2024-02-27 Raffles Medical - Normalised To Pre-COVID Levels.
Price targets by 5 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
