Raffles Medical: IIFL maintains Add, TP $2.55. Note that counter is the only quality healthcare stock listed on SGX. Expect grp’s non-cyclical and steady growth business to deliver 18% earnings CAGR over 2010-13 driven by:
1) 13% revenue CAGR; and
2) 140bps expansion in operating margin on the back of higher reve per bed and specialist service fees.
The completion of $200m hospital expansion and a new specialist medical centre by end-2014 will more than double its 2015 NP vs 2010. Favourable industry fundamentals and a highly cash generative business model make grp a great stock to own in the current uncertain environment.