Raffles Medical

Raffles Medical: DMG hosted at its Asean Corporate Day. Notes Raffles Med has hired more staff as it prepares for operations at Thong Sia (its Specialist Medical Centre) and its hospital extension. Notes its plans for Thong Sia are progressing on track and partial operations are expected in mid ’13, while its hospital extension project is progressing well and construction is expected to be completed in 2015. The co remains interested in expanding its operations regionally, such as in China, Msia and possibly Vietnam markets, though mgt maintains it would only proceed with the right partner. The house notes that while staff cost will likely rise in line with increase in headcount, div payout is likely to remain at ~40%. Continues to like the co for its resilience and stable growth. Maintains Buy with TP $2.67.