Healthcare companies are generally considered as defensive stocks since their services are needed when the economy’s good as well as bad. The defensive nature of their businesses also makes healthcare companies attractive to investors. There are many healthcare companies in Singapore’s stock market and you might want to know which is a better investment opportunity. There’s no easy answer, but I want to directly compare the important business and valuation aspects of two healthcare services providers – Raffles Medical Group Ltd (SGX: BSL) and Singapore O&G Ltd  (SGX: 1D8) – in a mini article-series. This article is the first in the series and it compares the most recent quarterly earnings updates of the two companies. The objective is to find out which compa

Last weekend, I went to perform scuttlebutt on Raffles Medical Group Ltd‘s (SGX: BSL) Raffles Specialist Centre. The specialist centre, a 20-storey building with two basement floors, was opened on 22 January 2018. It has a gross floor area of about 220,000 square feet. Together with the adjacent Raffles Hospital, the combined development has a gross floor area of around 520,000 square feet. Here are some things that I experienced during my visit to the Raffles Specialist Centre on a Saturday afternoon: 1. There is Dimbulah Mountain Estate Coffee located at the main entrance. It has a very prominent frontage as people who walk past the specialist centre would not miss it. I was surprised that the outlet was well-patronised, as there were not many people in other parts of the speci

A year ago, Phillip Capital Management, along with Lion Global Investors, launched the Lion-Phillip S-REIT ETF. The ETF aimed to give investors a way to invest in a diversified basket of Singapore REITs (S-REITs) which paid a steady stream of distributions. (At the moment, the average distribution yield for S-REITs is 6.8%.) The ETF was met with a largely positive response from the market – Lion Global Investors and Phillip Capital Management initially aimed to raise S$40-50 million but exceeded their target when the fund raised over S$100 million last October. Capitalizing on the Singapore market’s appetite for yield, Phillip Capital Management has now launched the Phillip SING Income ETF. The initial offer period for the ETF will close at 11:00 a.m. on 19 October 2018 before its list

The healthcare sector has traditionally been considered as a defensive segment with good multi-year growth potential, in step with an ageing societal demographic, rising affluence and the continued demand from medical tourism. Continued market volatility and rising US-China trade tensions has also benefitted defensive sectors like healthcare, which has seen inflows from institutional funds recently. Tracking the performance of healthcare stocks listed on the Singapore Exchange is the iEdge SG All Healthcare Index, a f index that comprises 31 constituents. The five best-yielding constituents of the iEdge SG All Healthcare Index are: First REIT (6.9%), ISEC Healthcare (4.9%), Singapore O&G (4.9%), Parkway Life REIT (4.8%), and Talkmed Group (3.4%). These five stocks have average

There is a new kid on the block for the local ETF scene - the Phillip SING Income ETF (Phillip SING). Hot from the oven, it was launched by Phillip Capital on 1 Oct Monday.I will share some pertinent points worth noting about this ETF, to aid you in your decision whether to subscribe for it.The indexPhillip SING tracks the Morningstar Singapore Yield Focus Index (The Index) that comprises a basket of stocks selected using Morningstar's proprietary quality income strategy and factors. The 30 stocks were identified based on a composite score derived from following factors:Quality - quantitative moat scoreFinancial Health - distance to default scoreDividend - trailing 12 month dividend yieldI attended an insider briefing for Phillip in-house remisiers and learnt that since 2005, The Index has

This week, Sing Medical (“SMG”) caught my attention. SMG has dropped 39% from $0.725 on 18 Jul 2017 to trade $0.440 on 3 Oct 2018. My personal guess is part of the fall may be attributable to a) Lower, or no earnings growth for some of the healthcare players in FY18F. However, this is likely not the case for SMG, as analysts believe SMG is on track for a minimum 40% growth in FY18F net profit. It is noteworthy that SMG already posted a 70% jump in 1HFY18 net profit; b) Reduction in the general PE valuations ascribed to the healthcare sector;   So, what caught my attention? a) Positive chart: SMG is testing its downtrend line established since 26 Jan 2018 (See Chart 1 below). Indicators such as OBV, RSI and MACD are strengthening. ADX has started to rise and last trades 22.6 on 3 Oct 2

The healthcare industry is a resilient one. No matter what the economy does, there would be demand for doctors. An ageing population and the rising affluence in Singapore should also bode well for healthcare companies here. With the rising trade tensions worldwide, it is not surprising that the healthcare stocks in Singapore have performed well. Shares in the industry have risen some 11% over the past one year. But, are there good value opportunities still around? Let’s find out by comparing three stocks in the industry. Raffles Medical Group Ltd (SGX: BSL) is one of the largest private healthcare groups in Singapore. Established in 1976, it now has a presence in 13 cities across Asia, serving more than 2.2 million patients. The healthcare company has seen its share price deteriorate in

With an aim to address the common-man-investor’s problem of being sucked into dividend traps, Phillip Capital Management is offering a new exchange-traded fund (ETF) to provide income-hungry investors with an ability to invest in a diversified group of quality dividend companies in one fell swoop. The Phillip SING Income ETF (SGX: OVQ), as it is called, is Phillip Capital’s third ETF in Singapore’s stock market. The new ETF was launched yesterday, and The Motley Fool Singapore was invited to an exclusive media briefing for the launch-event. The Phillip SING Income ETF aims to fully replicate the Morningstar Singapore Yield Focus Index. The 30-stock index selects Singapore-listed companies based on three main factors: business quality; financial health; and dividend yield. In

Healthcare companies are generally considered as defensive stocks since their services are needed in both good and bad times. As such, the prevailing view is that healthcare companies tend to act as a hedge during a downward market. Given their defensive nature, it is not surprising to see that most of these companies are trading at high valuations. But still, we don’t want to pay an excessive price to buy these stocks. Here, we will compare the valuation of three major healthcare-related stocks listed in Singapore, namely, IHH Healthcare Berhad (SGX: Q0F), Raffles Medical Group Ltd (SGX: BSL) and Top Glove (SGX: BVA). What we will do is to find the company with the lowest valuation (as at 15 September 2018) through three valuation metrics: price-to-book (PB) ratio, price-to-earnings (

Soon after Singapore celebrated the nation’s 53rd birthday, Prime Minister Lee Hsien Loong addressed some of the more pressing concerns which have been on Singaporeans’ minds during the National Day Rally (NDR) 2018. In his speech, PM Lee devoted a large part of his time touching on the new schemes to alleviate housing concerns, new changes made to healthcare subsidies as well as the rising costs of living. With that in mind, we identified three stocks centered on the themes mentioned during NDR 2018 which we think could benefit from the new policies. ISOTeam Listed on the Singapore Exchange (SGX) in July 2013, ISOTeam is an established player in Singapore’s building maintenance and estate upgrading industry with over 19 years of experiences. The group has successfully completed over

Defensive stocks pertain to those companies whose operations are not subjected by cyclicality. Here are three defensive stock picks are value plays with undemanding valuation. Investors Takeaway: 3 Defensive Stock Picks With Undemanding Valuation Raffles Medical Group Raffles Medical Group announced that it will be launching Raffles Shield, a Medisave-approved Integrated Shield Plan (IP). The entry of Raffles Medical Group will make it the seventh IP provider to enter the industry, joining other providers such as AIA, Aviva, Income and Prudential. At its current share price, KGI believes that it is attractive to accumulate Raffles Medical Group as part of a defensive portfolio. KGI notes that Raffles Medical Group’s current valuation is undemanding with limited downside. Although star

Singapore’s stock exchange is home to some interesting healthcare stocks. Most of us would be familiar with household brands such as Raffles Medical Group Ltd and IHH Healthcare Bhd. But besides these, there are other smaller healthcare providers that go under the radar from the general investing public. In this article, I want to compare two such companies that could potentially boost the health (pun intended) of your portfolio. Introducing the contenders The two companies that I will be looking at are ISEC Healthcare Ltd (SGX: 40T) and Singapore O&G Ltd (SGX: 1D8). ISEC, through its team of 25 doctors, provides specialised eye care service in Singapore and Malaysia. It operates four ambulatory surgical centres in Malaysia and one in Singapore. It also recently expanded its service

When it comes to investing in stocks, we would all love the ability to predict future stock prices. While crystal balls don’t exist in real life, there are many factors that we could pay attention to in order to help us make better investments. For those who prefer investing on their own, looking at the underlying business behind the stock ticker is crucial. This can help us differentiate high quality companies or those with good potential from the rest. There are several ways we can go about determining the quality of the company – including looking at its market capitalisation, financial ratios, recent revenue and profitability, ownership structure, peer performance, economic landscape and many more things. Read Also: 5 Criteria To Better Evaluate The Stock You Want To Invest In One

Investors in Raffles Medical Group Ltd (SGX: BSL) shares have probably been feeling disappointed by its performance in recent years. The one-time high flying stock has failed to deliver meaningful bottom line growth for more than four years, leaving the stock languishing over 35% off its peak. Can this former stock market darling, finally regain its spark? Let’s take a closer look at its current challenges, and its growth opportunities. The Headwinds Raffles Medical Group continues to face challenges in its healthcare services sector. In 2017, revenue from this business segment, which contributed 40% of its revenue, declined 1.6%. The  saturated local family medicine sector in Singapore may be behind the slowdown in demand. Despite improvements in the second quarter of 2018, which was

On Sunday, 20 August 2018, Prime Minister (PM) Lee Hsien Loong gave his National Day Rally speech at the Institute of Technical Education College Central campus in Ang Mo Kio. He touched on various topics, such as the cost of living, housing and healthcare in Singapore, among others. Some Singapore-listed companies could benefit (or be affected) from the plans laid out during the rally. Let’s take a look. Healthcare – CHAS extension and the new Merdeka Generation Package PM Lee announced that the Community Health Assist Scheme (CHAS) will be extended to all Singaporeans with chronic conditions, regardless of income. The level of benefits, however, will continue to depend on the individual’s income. CHAS, which previously covered only middle to lower-income Singaporeans, provides subs

Raffles Medical Group Ltd (SGX: BSL) is one of the largest private healthcare groups in Singapore. Started in 1976, it now operates in various cities including Singapore, China, Japan, Vietnam, and Cambodia. This morning, the healthcare company announced its financial results for the second quarter ended 30 June 2018. Financial highlights Revenue for the latest quarter rose 0.1% year-on-year to S$120.2 million. Revenue from the Healthcare Services division grew 5.4%, while revenue from the Hospital Services division fell by 2.3%. The higher revenue from the Healthcare Services division was due to the addition of new corporate clients and a new contract to offer Air Borders screening services, which was awarded by the Ministry of Health and Civil Aviation Authority of Singapore. On the oth

My view: S'pore-Aipha-picks: MY PICK: 1. Raffles Medical (RFMD SP) Px/Tgt SGD1.11/1.20 2. Venture Mfg (VMS SP) Px/Tgt SGD17.50/18.50 3. UOB (UOB SP) Px/Tgt SGD27.00/31.80 4. OCBC (OCBC SP) Px/Tgt SGD11.57/13.52 5. DBS (DBS SP) Px/Tgt SGD26.75/28.95 6. SingTel (ST SP) Px/Tgt SGD3.21/4.22 7. SingPost (SPOST SP) Px/Tgt SGD1.34/1.59 8. CD (CD SP) Px/Tgt SGD2.30/2.43 9. SembCorp Ind (SCI SP) Px/Tgt SGD2.68/3.60 10. City Dev (CIT SP) Px/Tgt SGD9.90/11.50 11. Capitaland (CAPL SP) Px/Tgt SGD3.15/4.10 Click HERE to contact us for the full version of this UOB Kay Hian stock research report.Thanks & RegardsInvest Stock - www.facebook.com/investstockAny expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please r

Numerous companies are about to release their earnings report card. There are two companies in particular that I will be keeping a close eye on. They are Raffles Medical Group Ltd (SGX:BSL) and AEM Holdings Ltd (SGX: AWX). Both these companies have been hit by massive sell-downs, leading to share prices falling more than 30% from their peaks. Raffles Medical has been hit by negative market sentiment due to a saturated private healthcare market in Singapore and regional competition for medical tourism. AEM Holdings, on the other hand, after surging in 2017, has fallen hard from its peak due to fears that a US-China trade war can impact the company’s earnings. However, both companies, in my view, have a bright future and the sell down might be overdone. Here’s what I’m looking out for

Temasek Holdings recently reported a net portfolio value of $308 billion, up by 12% from $275 billion in 2017. As the country’s institutional investor, Temasek knows that it has no room for failure. After all, the funds generated by Temasek’s investments are used to supplement Singapore government’s budget spending and for growing our national reserves. Thus, identifying global trends is critical in guiding investments towards a better, smarter and more connected world in the long term. At the recent annual Temasek Review 2018, Temasek shared the 6 key global trends that has guided and will continue to guide its investments. Looking at Temasek’s newly invested companies, you will see that a common theme is that they are innovative, and have the potential to cre

Raffles Medical Group Ltd (SGX: BSL) runs hospital and healthcare services in Singapore. It also has a network of clinics in five countries and thirteen cities. In addition, the company is developing two hospitals in China. For investors who would like to learn more about the company, we can start with a simple premise – how does it make its cash. The table below comes from Raffles Medical’s annual report. Source: Raffles Medical 2017 Annual Report From the above, we can see that Raffles Medical categorized its income sources into three groups. Hospital Services This segment accounts for the biggest share of the company’s revenue and profit before tax. The Raffles Hospital in Bugis falls under this category where it provides specialised medical services and operates medica