Thursday, April 28, 2011

Raffles Medical

Raffles Medical: 1Q11 results slightly above consensus.
Net Profit + 15.7% to $10.6m YoY. Quarterly revenue broke another record at $64.4m, +14.7% yoy, on growth across all divisions. Revenue from Healthcare +14.4% yoy and Hospital Services +15% yoy. A rising patient load, wider range of medical specialties and improved operating efficiencies also contributed to improved EBIT of $12.8m, +15.2% yoy...

Balance sheet remained strong with net cash of $71m (~13.5cts/sh). NAV/sh climbed to 56.6 cts from 54.5 Scts at end-4Q10...

The Group completed the acquisition of Thong Sia Building, a 7-storey commercial block (42.7k sf) located in Orchard Road, on 15 Apr ’11. Mgt intends to establish a Specialist Medical Centre there with operations expected to commence in 2012. The Group also expects to apply for expansion of its North Bridge Road premises (additional 102.4k sf) by 3Q11. Financing would be by a mix of internal funds and borrowings...

CIMB retains Outperform rating with TP $2.64, pegged to 23x CY12 P/E. Continues to expect stock catalysts from the addition of clinics, expansion of medical specialties, higher foreign-patient growth, and higher intensity cases in the hospital segment.

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