The Positives
The Negatives
Outlook
Upgraded to ‘Accumulate’ with a higher TP of S$1.32 (previously $1.27)
We adjusted for the (i) the turnaround in MCH and Shaw Centre; and (ii) the estimated start-up costs in FY2018-21. Better than expected performance in China hospitals would be a re-rating catalyst.
Figure 2: Peers Comparison
Raffles Medical Group is currently trading at 30.6x forward PER, which is a 16% discount to its regional peers’ average of 36.5x.
Its FY17e dividend yield of 1.7% is on par with its regional peers’ average.
Lin Sin has been an investment analyst in Phillip Securities Research since June 2014, where she started as an economist, focusing on China and ASEAN macroeconomics. Currently, she covers primarily the Consumers and Healthcare sectors in Singapore equities market.
She graduated with a Bachelor of Science in Mathematics and Economics from NTU.