+ Pandemic-related revenue. Revenue jumped 42% YoY in 1H21. Two sources of growth were COVID-19 vaccinations and PCR swab tests. Raffles operates 17 of Singapore’s 40 vaccination centres. Revenue from foreign patients was limited except for emergency cases. Still, Raffles has maintained contact with its foreign patients via telemedicine and may provide their opinions on patient condition.
+ Surge in operating cash flows. Operating cash flows catapulted from S$35mn in 1H20 to S$83mn in 1H21. However, capex also increased by S$13mn to S$40mn and dividends, to S$37mn in the absence of scrip dividends.
– No interim dividend. No interim dividend will be paid this financial year. But it has guided an annual dividend of half its average sustainable PATMI. Dividend for FY21e is expected to be not less than 2.5 cents. Our estimate is 3 cents.