Singapore Stock Market News

Raffles Medical Group - Adding capacity

StockFanatic
Publish date: Thu, 23 Jan 2014, 09:11 PM
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Raffles Medical Group (RFMD) began 2014 on a strong footing and the latest news on its land acquisition and hospital expansion reflect better use of its cash proceeds and allay concerns about over-crowding/lack of capacity. Our FY14-15 EPS is cut by 2-4% to reflect the higher financing costs and our target price is lowered by 3% (still based on 23x CY15 P/E).

The catalysts are the higher healthcare dollars from the expansion of Raffles Hospital and the successful development of integrated international hospitals in China with its JV partners. We maintain our Add rating on RFMD.
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