Singapore Stock Market News

Raffles Medical Group - Hallmark once again!

StockFanatic
Publish date: Tue, 23 Jul 2013, 11:09 AM
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2Q13 results bespeak Raffles Medical's hallmark once again: its operating efficiencies. We brace ourselves for potential special dividends, even as the group continues to expand and break new growth frontiers.

2Q/1H13 core profits are in line with our expectations, at 22% and 43% of our FY13 respectively (1H usually at 40-45%). RFMD has a very good cash-churning business. We maintain our EPS, target price at 25x CY14 P/E (on par with regional peers) and Outperform rating. Catalysts could include Raffles Hospital's expansion and success in developing an integrated international hospital in Shenzhen with its JV partner.
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