Raffles Medical earnings to become even more resilient

Thanks to revamped national healthcare scheme.

"With an extensive network of clinics in Singapore as well as a hospital, Raffles Medical is expected to benefit from the Community Healthcare Assist Scheme (CHAS) and Medisave alterations announced recently in the National Day Rally Speech. 91% of its 44 clinics in Singapore are already registered under CHAS and will benefit," said research firm Maybank Kim Eng in its latest company update.

"We believe Raffles Medical has resilient earnings due to its diversified patient base and significant room to increase prices as its average bill is around 20% cheaper than peers such as Gleneagles and Mount Elizabeth," it added.

The research firm is also anticipating expansion plans to push through beginning this year.

"With current bed utilization at around 60%, we believe there is further room to grow hospital revenue at current trajectory (up around 15% YoY in past twelve months)," Maybank said.

"On the China front, we believe a more concrete development could materialize over the next 2 months. We are positive on this market as attractive premiums can be derived from this vast market with burgeoning middle and upper class patients," it added.