Raffles Medical Group

Raffles Medical Group: CIMB maintains O/p with $3.50 TP. House note that FY12 core EPS is in line at 97% of house forecast, confirming renewed operating efficiency. More importantly, the potential for an overseas venture with China Merchant Bank adds excitement, underscoring the group’s longer-term plans for Hong Kong and Shenzhen. If RFMD pursues this opportunity and Chinese approval is granted, the hospital could be ready in three yrs’ time.