Raffles Medical

Raffles Medical: steady 1Q12 results, though slightly below consensus. Revenue at $72.9m, +13% yoy, vs consensus $74.4m. All divisions continued to contribute positively, with revenue from Hospital Services and Healthcare Services +15.3% and +7.4% respectively. Net profit at $11.6m, +11% yoy, vs consensus $13.9m. Growth came from higher patient load and patient acuity. Notwithstanding the uncertainties in US and Europe, mgt expects to benefit from the strong demand for high quality healthcare services locally and from the region. Raffles Hospital has received its grant of provisional permission from URA for the additional 102.4k sf expansion, and is planning for construction of the Hospital extension. The Group has also appointed consultants to work on the 42.7k sf property at 30 Bideford Road to retrofit it and expand the Group’s specialist centre operations. The Group expects to commence clinical operations in the Orchard Road shopping precinct in 1H13. The stock trades at 23.9x P/E.