Raffles Medical

Raffles Medical: 1Q13 results inline. Revenue at $81.1m, +11% yoy, mainly due to contributions from the Hospital and Healthcare Services segments, which increased by 16% and 4% respectively. Net profit at $13.5m, +16% yoy, boosted by higher operating efficiencies. Mgt remains optimistic that the group will continue to grow in FY13. Growth drivers include: i) more specialists joining the hospital, ii) expansion and refurbishment of the Intensive Care Unit (ICU), and iii) on-going process to extend the main Raffles Hospital premises at North Bridge Road. At 35.1x annualized 1Q13 P/E, 4.6x P/B, absolute valuations appear steep, but are inline local listed peers, IHH (32.5x P/E) and Q&M (34.1x P/E). OCBC places its Hold rating and TP $3.01 under review, pending results briefing.