- Raffles Medical (SGX:BSL)'s 1H24 revenue and PATMI were within expectations at 57% / 52% of our FY24e estimates respectively. 1H24 PATMI declined 49% y-o-y to S$30.9mil. 1H24 EBITDA margins collapsed 9% points y-o-y to 16.6% due to higher losses at the insurance operations, continued losses in China, lower margins from transitional care facilities, and lower government grants.
- - Read this at SGinvestors.io -
The Positive
Improving revenue in China.
- 1H24 revenue in China grew 6% y-o-y to S$30.5mil. A majority of patients are locals except for Beijing Hospital. The gestation losses are coming down in China (amount not disclosed) and it is applying for universal healthcare insurance to be used in its hospitals.
- - Read this at SGinvestors.io -
The Negative
Margin collapse.
- 1H24 EBITDA margins collapsed 9% points y-o-y to 16.6%. The margin declined from lower government grants (1H24: S$1.6mil, 1H23: S$8.2mil), widening insurance losses (1H24: -S$6.5mil, 1H23: S$1.3mil), continued losses in China and weaker margins from transitional care facilities.
Outlook
- Read more at SGinvestors.io.
