Raffles Medical Group - Maybank Kim Eng 2020-09-30: Risk-Reward Improves; Upgrade to BUY

RAFFLES MEDICAL GROUP LTD (SGX:BSL) | SGinvestors.io RAFFLES MEDICAL GROUP LTD (SGX:BSL)

Raffles Medical Group - Risk-Reward Improves; Upgrade to BUY


Commitment to safety and quality

  • Upgrade Raffles Medical Group (SGX:BSL) to BUY from HOLD with unchanged DCF-Target Price of SGD0.99 (WACC: 9%, LTG: 3%) as recent correction of Raffles Medical Share Price has improved risk-reward.
  • Raffles Medical Group's key sustainability factor is ensuring patient safety and regulatory compliance. Raffles Hospital Singapore is also JCI accredited since 2008, underscoring its commitment to patient safety and quality healthcare. Raffles Medical Group also places strong emphasis on employee welfare and diversity.
  • Key risk is slower than expected recovery of foreign patient volumes.



Governance – patient safety is paramount

  • As a medical services provider, patient safety is the highest priority. As such, Raffles Medical Group places strong emphasis on complying with all laws and regulations, on top of having its own internal reviews on clinical quality.
  • Raffles Hospital Singapore has been JCI (Joint Commission International) accredited since 2008, underscoring Raffles Medical Group’s commitment to patient safety and healthcare quality. Raffles Medical Group faces data security risks and have procedures in place to protect data, including customers’ information. There was no incident of leak, theft or loss of customer data in 2019.


Social – diversity breeds success

  • Raffles Medical Group promotes workplace diversity, as it sees this as an advantage in catering to the various markets and patient groups in terms of communication and local knowledge. Raffles Medical Group formed a Talent Management Board in 2019 to oversee leadership development and succession planning at the group level.
  • Raffles Hospital Singapore’s customer satisfaction index improved slightly to 75.5 in 2019 (2018: 75.1).

Environmental – proactively managing footprint






Lai Gene Lih CFA Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2020-09-30
SGX Stock Analyst Report BUY UPGRADE HOLD 0.990 SAME 0.990



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