• 2Q18 PATMI of S$16.9m was in line; up 0.8% y-o-y on staff and consumables’ cost savings.
• Healthcare services revenue rose 5.4% y-o-y due to new screening contract and addition of corporate customers, with potential boost from e-Commerce services.
• Hospital services revenue fell 2.3% y-o-y on the back of medical tourism weakness, but local patient load held steady.
• Introduction of “Raffles Shield” and NTUC partnership could offer earnings upside, depending on take-up rate and underwriting profitability.
• Maintain HOLD till further visibility, with slightly lower SOP-based Target Price of S$1.19.

Source: CGS-CIMB Research - 06 Aug 2018