Raffles Medical Grp

Raffles Medical Grp: Announced 2Q12 results which was inline with expectations. Rev at $76.9m, +14.9% yoy and +5.5% qoq, while net profit at $12.4m, +6.8% yoy and flat qoq. Growth in rev came from positive contributions in all divisions of the Group. Revenue from Hospital Services and Healthcare Services divisions +19.1% and +9.1% respectively, driven by higher patient load and patient acuity. Grp note that with additional beds of new public and private hospitals coming on-stream, the healthcare landscape will remain competitive. The expected slowdown in China’s economic growth may have dampening effect on healthcare demand from the region. Barring unforeseen circumstances, grp optimistic that it will continue to grow in 2012. We note that the group has a healthy net cash position of $42.3m and trades at an annualized 30x FY12E P/E. Grp has announced at interim dividend of 1c/share.