Raffles Medical Group

Raffles Medical Group: OCBC maintains Buy with $3.42 TP. Note that Raffles Medical Group’s (RMG) share price has fallen ~5% since the start of Jul, and believe this may have been caused by concerns over the impact of the weakening IDR on RMG’s Indonesian patient visits, coupled with the broad market weakness. RMG updated house that it has not felt any significant effects of this on its medical tourism figures. House believe this is because a larger proportion of its foreign patients come to RMG for the treatment of more acute illnesses rather than elective procedures. Meanwhile, RMG would recognise a net gain of ~S$21.4m from the disposal of Raffles Medical Management (which owns the Thong Sia commercial podium) for $120m, and this would bolster its cash balances.