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.