Raffles Medical Group to see a 10% decline in H122 net profit: forecast

This is on the back of expected lower revenue from the hospital's COVID-19 services.

Raffles Medical Group will likely see a 10% decline in its net profit in the first half (H1) of 2022, according to CGS CIMB.

In a report, the analyst cited a lower contribution from the hospital's COVID-19 service as a contributor to the decline.

"We expect revenue from COVID-19-related services to decline by 60% in our FY22-24F forecasts," said CGS CIMB.

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What could offset the lower contribution from the hospital's COVID services in H1 2022 is the return of acute private hospital admissions or specialist outpatient visits.

Citing data from the Ministry of Health, CGS CIMB said acute private hospital admissions or specialist outpatient visits have returned to 84% and 97% of pre-COVID levels, respectively, as of May.

"We believe the recovery has been primarily driven by the return of domestic patients undergoing elective treatments that had been deferred over the last two years, and the partial return of foreign patients as medical tourism ramps up as Singapore reopened its borders more extensively in April," the analyst said.