Raffles Medical Group expects uptick in net profit: report

Domestic medical services largely normalised in H2 2020.

Raffles Medical Group (RMG)will largely recover in 2021 as domestic medical services and patient volume return to normalised level, according to a report by UOB Kay Hian.

Since 20 October, private hospital admissions in Singapore are down by only 9% YoY.

The report also said that with the expected reopening of borders, the COVID-19 polymerase chain reaction tests that have been made available for travellers at the RMG network of clinics could be increasingly utilised as air travel returns.

General practice clinics of the group may also be utilised for local vaccine administration.

“We estimate that RMG clinics make up about 2% of the private GP clinics in Singapore. Assuming a COVID-19 vaccination programme in which private GP clinics are included as part of the administration, we see marginal benefits from vaccination volumes of possibly 50,000-100,000 at RMG clinics, assuming a full population vaccination,” the report said.

The report forecasted earnings to recover by 50%-60% HoH in H2 2020.