• Raffles Medical Group announced the signing of an MOU with China Taiping Insurance Group (CTIG), in a positive tie-up with one of the top five insurance players in China. The MOU seeks to build a partnership in health insurance provision, among other opportunities.
• We have not factored the MOU into our estimates, but note that a successful execution would raise earnings.
• Maintain BUY and DCF-based target price of S$1.28.

What’s New

Partnership with an established insurance player...

China Taiping Insurance Group (CTIG) is a Chinese state-owned financial and insurance group. Listed on the Hong Kong Stock Exchange, it has a long operating history (since 1929) with nearly 2,000 outlets and total assets of up to Rmb550b. This gives Raffles Medical Group the advantage of working with a local Chinese partner with strong experience and knowledge.

Source: UOB Kay Hian Research - 28 Aug 2018