+ Healthy cash flow. The net cash continues to grow at S$239mn (2Q23: S$230mn). Cash continues to pile up after the completion of the hospitals in China. Capex has collapsed from a peak of S$96mn in FY19 to S$25mn last year.
– Revenue is down sharper than expected. We believe the drag in revenue came from lower pandemic-related vaccination and test service at the clinics and centres and softer foreign patient revenue. Revenue at the GP clinics is normalising back to pre-pandemic levels. Foreign patient volumes are below expectations due to the rising cost in Singapore.
– Margins collapsed. Margin weakness was from the loss of high-margin vaccination and testing services. Other expenses such as utilities and staff cost continue to climb. There were only moderate price increases during the period.