Raffles Medical Group (RMG) reported a double-digit YoY growth in both its topline and bottomline for its 3Q14 results. Revenue was up 11.1% YoY to S$94.5m due to a higher patient load, addition of specialist consultants and increased provision of healthcare insurance services; while PATMI jumped by 11.3% to S$15.4m. For 9M14, revenue increased 8.6% to S$274.6m, and constituted 72.1% of our FY14 forecast. PATMI rose 9.2% to S$45.6m, or 67.1% of our full-year projection.

This was within our expectations as 4Q is traditionally RMG’s strongest quarter (9M13 PATMI had formed 68.9% of FY13’s core PATMI). We will provide more details after the analyst briefing. Maintain HOLD on RMG, but our S$3.90 fair value is under review.

Source: OCBC Research - 27 Oct 2014