Raffles Medical Group (RMG) reported its FY14 results this morning, which met the street’s expectations. Revenue was up 9.9% YoY to S$374.6m due to higher patient load and addition of specialist consultants. PATMI at S$68.0m was 20.3% lower, but excluding a oneoff gain of S$20.4m from the disposal of a subsidiary in FY13 as well as adjustments in fair value of investment properties, the group attained a 6.5% increase in net profit to S$65.0m.

A final dividend of 4.0 S-cents/share has also been declared, bringing total dividend to 5.5 S-cents/share (FY13: 5.0 S-cents/share). With a change in analyst coverage, we keep our HOLD rating and fair value estimate of S$3.95 under review and will provide more details after the analyst briefing.

Source: OCBC Research - 16 Feb 2015