Raffles Medical

Raffles Medical: 1Q14 net profit climbed 8% to $14.6m while revenue increased 8% to $87.6m, with Healthcare and Hospital Services increasing 14.3% and 4.8% respectively. Revenue growth was driven by increase in patient load from the expansion of RafflesMedical clinic network and from more corporate contracts secured in Singapore, higher volume of healthcare insurance series and additional of more specialist consultants to its group practice. Expenses were relatively flat y/y. For Raffles Holland Village, construction work for the 5-storey commercial building on the site of the former POSB Building has begun in early Apr. On the Raffles Hospital Extension, development plans for the additional 220,000 sf of floor area is currently being finalized. The new expansion will include a new Radiotherapy Centre, new medical centres, a healthcare training institute, clinical research centre as well as the additional of more hospital beds. Management guides that this extension will provide significant scope for growth over the next 10 years. NAV at end Mar was $0.8811 translates to P/B of 3.9x. Annualized 1Q14 P/E is 32.9x.