Raffles Medical Group

[winston]

UPDATE 1-Investor sells 24 mln shares in Raffles Medical-sources

* Investor selling about 24 mln shares for S$2.26 each
* May raise up to S$57 mln * UBS involved in deal

(Adds details) SINGAPORE, Jan 14 (Reuters) - An undisclosed investor is selling about 24 million shares, or about a 4.7 percent stake, in Singapore medical services provider Raffles Medical for S$2.26 per share, sources familiar with the matter said.

Raffles Medical shares fell as much as 6.2 percent on Friday. At midday, the stock was down 4.5 percent at S$2.32 on a volume of 26.4 million shares.

According to IFR, an institutional investor sold around 24.5 million shares in Raffles Medical to raise up to S$57 million ($44.3 million).

The selling price of S$2.26 per share was a discount of around 7 percent to Raffles Medical's closing price on Jan 13.

UBS declined comment and Raffles Medical was not immediately available.

Raffles Medical Chairman Loo Choon Yong told Reuters in an interview in December last year that the firm does not rule out mergers and acquisitions if there was a strategic fit and reasonable valuation. [ID:nL3E6NF04V]

Interest in Asia's healthcare sector has soared since Malaysian state investor Khazanah took over Singapore hospital operator Parkway in a $2.6 billion deal last year, beating a rival bid by India's Fortis Healthcare .

Billionaire Singapore investor Peter Lim is taking over Thomson Medical Centre for S$513 million.


Source: Reuters

[tonylim]

(Copied from CNA forum)

The banking circle was talking about the 4.7% of Raffle medical changed hand yesterday, the buyer was Fortis group of India, who first launched a takeover of Parkway last year. Now RMG is their target ?

[winston]

Not vested

Raffles Medical , a provider of healthcare services, said on Monday it had bought a property at the city's famous Orchard Road shopping area for S$92.08 million ($72.3 million) to set up a specialist medical centre.

The firm also reported a 19.5 percent increase in its 2010 net profit to S$45.3 million from a year earlier, helped by higher patient load, wider range of medical specialties and the recruitment of more specialist consultants.


Source: Reuters

[winston]

Not vested. From UOBKH:-

Raffles Medical Group- Concrete expansion plans in Singapore. Premier healthcare play.

(BUY/S$2.23/Target: S$2.81)
FY11 P/E (x): 13.6
FY12 P/E (x): 12.3

Raffles Medical Group (RMG) has slightly underperformed the FSSTI, falling 6.7% ytd vs the market’s -5.9%. We highlight its concrete expansion plans and reiterate BUY for its solid outlook, strong earnings and execution track record. More details can be found in our blue top report dated 22 Mar 11.

Premier healthcare exposure in Singapore. RMG remains on our BUY list with a target price of S$2.81, based on DCF valuation which factors in a long-term growth of 4.0%.

Our target price implies 28.9x 2011F PE, which is more than 1SD to its mean PE of 20.6x (2003-present). We think the premium is deserved given the scarcity premium after the de-listing of Parkway and Thomson Medical as well as its strong operating cash flow.

[winston]

Not vested

RAFFLES MEDICAL GROUP - Healthcare services firm Raffles Medical Group said its first quarter net profit rose 15.6 percent to S$10.5 million from S$9.1 million a year ago, on the back of higher revenue from increasing patient load and improving operating efficiencies.


Source: Reuters

[winston]

not vested

Singapore's Raffles Medical said on Monday its 2011 net profit rose 11.3 percent to S$50.4 million ($40 million) from a year earlier, partly helped by improved operating efficiency, higher patient load, the recruitment of more specialist consultants and a wider range of medical specialties.

Raffles Medical may also benefit from Singapore's plan to double yearly expenditure on healthcare to S$8 billion from the current S$4 billion over the next five years.

Source: Reuters

[eauyong]

Two more reasons for the increase : "the recruitment of more specialist consultants and a wider range of medical specialties".
Looking good.

Vested.

[winston]

not vested

RAFFLES MEDICAL GROUP - Raffles Medical said on Monday its first-quarter net profit rose 11 percent to S$11.6 million ($9.4 million) from a year earlier on the back of better operating performance, partly driven by higher patient load.

Source: Reuters

[winston]

not vested

Raffles Medical- Opportunity from selldown. Buy for resilient outlook
(BUY/S$2.14/Target: S$2.87)

FY12F PE (x): 20.6
FY13F PE (x): 18.0

Opportunity from share price weakness. The stock has been sold down together with the market. Ytd, Raffles Medical Group’s (RMG) shares are up 0.9% (vs the FSSTI’s +5.2%) and are trading just 5% above its 52-week low of S$2.04.

Upside from upcoming IPO? In our view, the potential successful listing of Khazanah’s Integrated Healthcare Holdings (IHH) at premium valuations could be a near-term catalyst for the healthcare sector.

According to an article by Reuters (dated 17 May 12), IHH is slated to be listed on the Malaysian and Singapore bourses by end-July. Another potential listing to watch out for is the IPO of the healthcare-related assets of Fortis Healthcare as a business trust in Singapore.

Resilient earnings with potential upside in 2013/14. We have conservatively estimated a 3-year EPS CAGR of 13% over 2012-14. Going forward, we see potential for upside given RMG’s conservative pricing policy for its hospital and specialist treatments.

For selective surgery procedures, RMG’s treatment is priced at parity or at a slight premium (less than 10%) to government hospitals.

Opportunity on share price weakness. We remain positive, with a BUY rating and a target price of S$2.87/share (unchanged). This is based on a DCF valuation which factors in a long-term growth of 4.0%.

Cheaper than regional peers. On a regional basis, RMG’s 2013F PE valuation is also trading at an 11-12% discount to its regional peers such as Bangkok Dusit and Bumrungrad Hospital. Our Thailand research has a SELL rating on Bangkok Dusit and a HOLD rating on Bumrungrad.


Source: UOBKH

[winston]

not vested

Ready to rumble
OUTPERFORM - Maintained
Share Price S$2.31
Tgt. S$2.69

--------------------------------------------------------------------------------

ASEAN healthcare stocks have found a new lease of life, with share prices being re-rated amid increased trading volume.

But is this happening on the back of an upcoming new listing or are there other catalysts?

We found various themes at work, including a lack of new capacity that is driving healthcare inflation in Singapore.

An eventual unlocking of the value of RFMD’s real estate for capital recycling could be on the cards.

Maintain Outperform, EPS and target price at 20x CY13 P/E, its mid-cycle valuations.


Source: CIMB