Raffles Medical - UOB Kay Hian 2024-02-27: Weaker 2023 Margins In Line With Expectations; Headwinds Persist

Raffles Medical - Weaker 2023 Margins In Line With Expectations; Headwinds Persist

Raffles Medical (SGX:BSL) | SGinvestors.ioRaffles Medical (SGX:BSL)
  • Raffles Medical reported sharply lower PATMI of S$90.2m (-37.1% y-o-y) but was in line with expectations. The hospital operations reported a robust performance driven by increased patient intake and cost pass-through, offset by the impact of the strong Singapore dollar.
  • - Read this at SGinvestors.io -
  • Raffles Medical’s China operations continue to perform better as patient load ramps up.

2023 results marginally above expectations; lower dividend declared.

  • Raffles Medical (SGX:BSL) reported lower 2023 revenue and PATMI of S$706.9m (-14.1% y-o-y) and S$90.2m (-37.1% y-o-y), beating our full-year forecasts by 7% and 5% respectively.
  • - Read this at SGinvestors.io -
  • For 4Q23, it was noted that net profit grew 47.3% q-o-q to S$18m, on the back of better contributions from the hospital segment.
  • Moving into 2024, we reckon that Raffles Medical's earnings have bottomed out in 4Q23 and would improve sequentially in 1H24.
  • A total final dividend of 2.4 cents was declared for 2023 (2022: 3.8 cents), maintaining a ~50% dividend payout ratio and an annual dividend yield of around 2.4%.

Margins likely to remain soft.

  • Read more at SGinvestors.io.

Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.

Llelleythan Tan UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-02-27

Previous report by UOB:
2023-11-07 Raffles Medical - Weaker 3Q23 Performance As Margin Pressure Builds.

Price targets by 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


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