This chart shows why Raffles Medical Group is turning to China for growth

Muted operations in Singapore led to its first revenue decline since 2004.

After its head line slumped for the first time since 2004, Raffles Medical Group is pinning its hopes to its China-based hospitals.

According to Maybank KimEng, both Shanghai and Chongqing Hospitals could lift Raffles' growth in the mid to long term.

"Management revealed more operational and start-up information for the new Chongqing hospital. The 700-bed hospital will start with 200 private beds and 100 public beds by 2018. The public beds will serve as a good training ground for doctors and enable more local patients to understand Raffles Hospital’s operating model," Maybank KimEng said.

Meanwhile, the Shanghai hospital should start with 200 private beds, shortly after Chongqing Hospital.

"We expect both hospitals to turn profitable in 2020, the second full year of operation. However, we caution that start-up costs in 2018 and initial operating losses in 2019 will drag earnings. We estimate both hospitals to incur losses of $3.4m in 2018 and $2.3m in 2019, before reporting positive earnings of $2.0m in 2020," Maybank said.

Check out the chart below: