Wednesday, June 17, 2015

Raffles Medical

Raffles Medical: MaybankTV interviews John Cheong, investment analyst at Maybank-KE, who shares his views on Raffles Medical Group (RMG).

Overview:
1) Maybank-KE recently upgraded RMG to Buy, after pricing in more concrete developments in the group’s China hospital project. There is overwhelming demand for quality healthcare in China, giving RMG ample opportunity to plug the gap.

2) RMG is set to operate a 400-bed greenfield hospital in Shanghai and could see RMG leverage on its 15-year experience in Singapore operations.

3) Chinese operations to start contributing positively to RMG’s bottom-line by 2019. DCF calculations indicate that the project in China is valued at ~$1.20 and accounts for about 24% of RMG’s revised TP of $5.10.

4) Key risks includes project delays, cost overruns and regulatory risks

The video can be accessed via the following link below:
https://www.youtube.com/watch?v=R19yESKv5Fw

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