Raffles Medical - RHB Invest 2016-10-17: Maintain BUY recommendation with TP SGD1.70

Raffles Medical - RHB Invest 2016-10-17: Maintain BUY recommendation with TP SGD1.70 RAFFLES MEDICAL GROUP LTD BSL.SI

Raffles Medical - Maintain BUY recommendation with TP SGD1.70

  • We continue to like Raffles Medical despite slowing medical tourism receipts in Singapore as the Group is expanding its operations beyond Singapore.
  • Construction of its Shanghai Hospital is expected to complete in 1H18. In addition, it is exploring opportunities to expand in Beijing and Shenzhen. 
  • In Singapore, the current Raffles Hospital is operating at an optimal utilisation rate of about 70%. Hence, we expect to see increase patient loads when the construction of Raffles Hospital Extension completes in 1H17. 
  • Raffles Medical is currently trading at 29x FY17F P/E. We maintain our BUY recommendation with TP SGD1.70, implying 32x FY17F P/E.




Juliana Cai RHB Invest | http://www.rhbinvest.com.sg/ 2016-10-17
RHB Invest SGX Stock Analyst Report BUY Maintain BUY 1.70 Same 1.70



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