- Raffles Medical (SGX:BSL)’s 2H25 headline PATMI of S$38.5m (+22% y-o-y) came in slightly above MIBG/street forecasts. This was mainly bolstered by fair value gains on investment properties of S$4.7m, but partly offset by a S$2.5m impairment loss on trade receivables, intangible assets, and goodwill.
2H25 core earnings in line; BUY with higher TP
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- Raffles Medical has declared a final dividend of 3.0 cents (or an 84% payout ratio), which is significantly better than its official dividend policy of at least 50% of core earnings.
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Hospital services is the star performer
- For 2H25, hospital services’ external revenue and PBT rose 9.5% and 9.3% y-o-y to S$159m and S$23.4m, respectively, driven by higher patient volumes (after Great Eastern suspended pre-authorisation certificate for admission to Mount Elizabeth hospitals in Jun’25) and average bill sizes along with CPI-adjusted, as well as stringent headcounts control.
- Despite the higher-cost environment, the insurance arm (RHI) has managed to narrow its full-year losses through disciplined claims management and prudent expense control. To address rising insurance premiums which are increasingly unsustainable, the MOH has introduced a higher co-payment cap set to a minimum of S$6,000.
- RHI will launch a new rider that complies with the new regulations, although management has said the change is not expected to have a major impact on the financials of RHI.
China operations on slow and steady trajectory
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