Raffles Medical - RHB Research 2026-02-24: Defensive Growth With Catalysts Lining Up; Still BUY

• Raffles Medical (SGX:BSL) is entering a stronger FY26F–27F growth phase. Singapore’s hospital recovery should extend on specialist-led volume and supportive insurer-panel flow, while China losses continue to narrow despite EBITDA breakeven pushed to 2027.

• - Read this at SGinvestors.io -

• A net cash balance supports accretive M&A, with the Vietnam deal in late-stage due diligence.

Hospital recovery is extending, with FY25 hospital revenue up 6% y-o-y and PBT up 15% y-o-y.

• We see the momentum to remain supported by:

  1. New specialist onboarding in Singapore (still runway, with only two floors left to utilise at the specialist centre),
  2. favourable insurer-panel shifts diverting some volume from a local competitor, and
  3. - Read this at SGinvestors.io -

• Margins should stay resilient on measured price increase (some implemented in 2025) and productivity gains from technology, offsetting wage inflation. Healthcare softened (FY25 revenue: -4% y-o-y; PBT: -6% y-o-y) but has stabilised vs prior post-COVID normalisation. The current drag is due to tapering demand for step-down care by the Government.

China remains on the right track, albeit with a longer runway.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2026-02-24

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