- The sector has been in the doldrums for almost 2 years since profits peaked in FY22 along with the gradual cessation of COVID-19 services.
Watching out for signs of turnaround in 2025
- Despite border reopening, medical tourism has failed to pick up the slack amid keen regional competition, high costs and a strong S$. This led to normalisation of revenues for private healthcare providers, exacerbated by margin compression attributed to negative operating leverage and inflationary pressures.
- - Read this at SGinvestors.io -
- Maintain NEUTRAL.
Raffles Medical (SGX:BSL): China remains the wildcard
- We expect Raffles Medical to report 2H24 earnings of S$32m (+4.4% h-o-h, +5.5% y-o-y) given slight seasonality (as patients deferred elective/non-urgent procedures during the CNY period), and improving operating efficiency (through cost rationalization and rightsizing) for both its Hospital and Healthcare services divisions.
- - Read this at SGinvestors.io -
- More importantly, we want to see whether China operations continue to grow patient volumes, leading to narrower gestation losses.
- We will also be alert to any updated management guidance for its initial target of its Shanghai and Chongqing hospitals achieving EBITDA breakeven by end-2025.
Thomson Medical (SGX:A50): Takes time to unleash full potential
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Eric Ong Maybank Research | https://www.maybanktrade.com.sg/ 2025-01-17
