Raffles Medical Group’s 3Q17 results were largely within our expectations. Revenue rose 0.3% YoY to S$119.6m, forming 24.7% of our full-year estimates. This was supported by growth in revenue from the Hospital Services division, which grew 3.1% on the back of an increase in local patient load.

However, revenue from Healthcare Services division decreased 4.2%, due to the lower renewal of international healthcare plans for expatriates. PATMI grew 1.0% YoY to S$16.4m, forming 23.4% of our full-year estimates. The hospital projects in Chongqing and Shanghai continue to be targeted to be operational by 2H18 and 2H19, respectively.

We place our fair value estimate of S$1.47 under review, pending more information from the analyst briefing later today. Maintain BUY.

Source: OCBC Research - 30 Oct 2017