- We cut our 2024F–2025F earnings forecast for Raffles Medical (SGX:BSL) by 7-8% following weak 2H23 results. Although Raffles Medical's revenue and reported PATMI were in line, recurring PATMI was lower.
- - Read this at SGinvestors.io -
- Still, risks from higher-than-estimated operating costs, likely weak foreign patient load, and continuing losses from the insurance business persist. We await clarity on sequential earnings improvement in the coming quarters.
In-line reported numbers for 2023.
- Raffles Medical's revenue of S$706.9m (-14% y-o-y) was in line with our estimate. Reported PATMI of S$90.2m (-42% y-o-y) also met our estimate while recurring PATMI of S$74.5m (-46% y-o-y) missed. The hospital services division saw a sharp improvement in PBT for the 2023 and 2H23 periods amidst improved patient load in Singapore and the ramping up of operations in China, leading to y-o-y lower gestational losses.
- - Read this at SGinvestors.io -
- Healthcare services continued to see a decline in PBT due to a lack of revenue from COVID-19 activities.
- Maintaining a 50% payout ratio, Raffles Medical announced a final ordinary dividend of 2.4 cents.
Growth outlook filled with risks.
- Read more at SGinvestors.io.
Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-02-27
Previous report by RHB:
2023-11-07 Raffles Medical - Weak Earnings Could Persist Beyond 9M23.
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
