- Raffles Medical (SGX:BSL)’s 1H24 recurring profit came in below our and consensus estimates, due to higher costs. While longer-term growth remains driven by overseas operations (China and, likely, Vietnam), we see limited rerating catalysts in the near term.
- - Read this at SGinvestors.io -
1H24 disappointed.
- Raffles Medical’s 1H24 revenue of S$365.7m (+9% h-o-h, -1% y-o-y) accounts for 48% of our full-year projection. With the exception of healthcare services, all businesses reported y-o-y revenue growth.
- 1H24 recurring PATMI came in at S$29.1m (+27% h-o-h, -44% y-o-y), at only 35% of our full-year forecast. The earnings disappointment stemmed largely from lower other operating income and higher finance expenses.
Healthcare services business outlook.
- - Read this at SGinvestors.io -
- Raffles Medical will continue to operate the transitional care facility (TCF) at Changi Expo until Feb 2025. However, the contract to operate 176 beds dedicated to the TCF programme at its hospital will last for five years.
- The TCF contract margins are expected to be lower, and Raffles Medical believes the contribution from this TCF business could be volatile, depending on the timing and bed utilisation.
Hospital services upside depends on China & Vietnam.
- Read more at SGinvestors.io.
