Raffles Medical Group (RMG) reported its 1Q14 results this morning, with both revenue and PATMI increasing by 8.0% YoY to S$87.6m and S$14.6m, such that topline and bottomline formed 23.0% and 21.4% of our FY14 forecasts, respectively. This is within our expectations as 1Q is seasonally RMG’s weakest quarter. On a segmental basis, revenue for RMG’s Healthcare Services and Hospital Services segments grew 14.3% and 4.8% YoY, respectively. This was driven by higher patient loads, increased volume of healthcare insurance services and the addition of more specialist consultants. Pending an analyst briefing later, our BUY rating and S$3.68 fair value estimate is under review.

Source: OCBC Research - 28 Apr 2014