Raffles Medical Group

Raffles Medical Group: Maybank-KE maintains BUY with TP of $3.70, implying 27.6x FY14F. House note that Raffles Medical has secured a buyer for Thongsia building and expects to complete the transaction on 31 October 2013. The disposal proceeds on top of its strong recurring cash flows will provide strong ammunition to fund its local and overseas expansion plans. Its resilient earnings are expected to be stronger on the back of the revamped national healthcare scheme announced recently in the National Day Speech. Expansion on the local front is still expected to start by this year. On the China front, believe a more concrete development could materialize over the next 2 months.