As a leading integrated private healthcare provider operating in 14 cities across Asia, Raffles Medical aims to capture further growth from the Chinese healthcare market, where it has just opened the Raffles Chongqing hospital in January 2019 and plans to open Raffles Shanghai hospital in phases this year.

Near term we believe the share price is likely to stay range-bound given the still gradual return to normalcy from Covid-19 outbreak expected in its key markets and time needed for new projects in Hong Kong and China to stabilize.

Momentum at its new Chongqing hospital is expected to improve over time, driven by increasing patients from nearby Chinese cities such as Chengdu and Guangzhou. HOLD.

Source: OCBC Research - 27 Jan 2021