Raffles Medical Group reported its 1Q15 results this morning, which were within our expectations as 1Q is typically the group’s weakest quarter. Driven by higher patient load, revenue grew 8.5% YoY to S$95.0m, forming 22.6% of our FY15 forecast. Both the Healthcare and Hospital Services divisions saw its segment revenue increase 13.7% and 6.2% YoY respectively. PATMI was up 2.9% YoY to ~S$15.0m, which formed 20.6% of our FY15 forecast.

The group will be opening a new multi-service centre at Shaw Centre in Jun-15 as well as a new GP clinic at Eastpoint Mall. Raffles Holland V is also on track for completion by 1Q16. We keep our HOLD rating while our fair value estimate of S$3.91 is under review, pending more information from the analyst briefing later today.

Source: OCBC Research - 27 Apr 2015