Raffles Medical: 2Q10 results. Revenue +9% to $58.6m, due to better performance across all divisions. Net profit to sh/h +20% to $10.6m, on the back of higher margins due to improved operating efficiencies and scale effects arising from higher patient load factors. Mgt positive on outlook, expects recovery of Asian economies to underpin demand for healthcare services.
Of note is Raffles first foray into the Chinese market via Raffles Medical Shanghai, which manages a medical centre catering to expats and locals. Initial reception has been positive, and Raffles could step up its expansion efforts in China once it acquires more experience. Also, following approval by URA, Raffles is planning to expand its hospital at North Bridge Road to 410k sqft, from the current 308k sqft, which would drive the next stage of growth
Est development costs, including the development premium, would be approx S$80-100m, with construction period est to be about 18 months. Capex to be funded from internal resources.
No comments:
Post a Comment