Check out these 4 fierce business plans from Raffles Medical Group

Delays and losses? Bring it on.

According to UOB Kay Hian, Raffles Medical Group’s (RMG) 9M12 net profit of S$36.6m (+8.0% yoy) was slightly below its estimate on higher staff costs. But operating cash flows remained very strong at S$20.8m as at 3Q12. As a result, net cash balance had risen to S$68.7m compared with S$28.2m as at Dec 11.

Here's more from UOB Kay Hian:

Slight delay envisaged for Thong Sia. The group plans to re-submit its proposal to change the use of the commercial podium at Thong Sia to medical clinics and will work with the authorities to address the authorities’ concerns.

We understand that this could be due to the impact on traffic in the vicinity of Thong Sia. Though this could result in minor delays, Thong Sia could still be ready for initial operations by 2H13. Once the approvals are secured, the renovations/fitting out for Thong Sia could be completed in 2-3 months’ time.

Hospital extension targeted to commence construction in 1Q13. The group has secured all approvals for the extension of its flagship hospital. The expected commencement of construction is in 1H13 and more details will be provided at a later stage.

Eagerly awaiting the outcome of its HK tender in 1H13. Management expects the outcome of its tender for a hospital in Hong Kong to be known in 1H13.

RMG will not be partnering anyone for this bid. Should it be successful, the projected capital outlay will be in the region of S$250m-300m.

Financing this should not be an issue given its net cash position and strong cash flow generation of at least S$60m per annum.

No loss from prison contract. There were some concerns over RMG after it was reported that the group would no longer be the medical provider for Singapore Prison from Dec 12 onwards.

We believe this contract accounted for less than 5% of group turnover and is not a concern as we think this is a management strategy to rationalise its resources given the tight labour conditions.