Raffles Medical Group's profits jumped 15.9% to S$14.4m

Check out what boosted this growth.

According to OCBC Investment Research, Raffles Medical Group (RMG) reported its 2Q13 results this morning which were within expectations. Revenue rose 12.9% YoY and 7.1% QoQ to S$86.8m. PATMI was up 15.9% YoY and 6.8% QoQ to S$14.4m.

Here's more:

Growth during the quarter was driven by higher patient acuity and an increased depth and breadth of medical services on offer. Both RMG’s core divisions contributed to its topline increase, with its Hospital Services and Healthcare Services segments growing 16.8% and 6.5% YoY, respectively.

For 1H13, revenue increased 12.1% YoY to S$167.9m, forming 48.3% of our full-year estimates; while PATMI jumped 16.0% to S$27.9m, or 45.9% of our FY13 forecast.

This is unsurprising, as 2H is seasonally a much stronger half for RMG, and we expect this trend to be maintained this year. An interim dividend of 1 S cent/share was declared (payable on 29 Aug 2013), similar to 2Q12 and our forecast.

We will provide more details after the analyst briefing. We maintain our BUY rating and S$3.42 fair value estimate (29x blended FY13/14F).