, Singapore
392 views

Raffles Medical Group earnings per share estimate cut by 8-12% for FY22/24

Maybank Securities Research cited two reasons for its lower estimate.

Raffles Medical Group (RFMD) might see lower earnings per share (EPS) from the financial year 2022 to 2024, based on a forecast from Maybank Securities Research.

In a report, the firm said they cut their FY22-24 EPS estimate by 8% to 12% as they expect lower contributions from the private medical provider’s COVID-19 related services and China hospitals.

“We forecast COVID-19 support activities to taper off sequentially, especially its PCR test revenues as Singapore relaxes testing protocols for VTL travellers,” the analyst said.

On the group’s China hospitals, Maybank said: “China is experiencing sporadic COVID-19 clusters that may impact some of RFMD’s operations there.”

“Management has guided that break-even for its Chongqing hospital is likely to be delayed by a year to 2022, and Shanghai operations could incur EBITDA loss of $10m this year,” the analyst added.

The estimated core EPS for FY22, FY23, and FY24 was $0.041, $0.043, and $0.046, respectively.

Meanwhile, Maybank said RFMD would benefit from the government’s restructuring of the local healthcare system under its proposed 2022 budget, “allowing GPs to play a greater role given the fast-ageing population.”

Related: Raffles Medical Group’s H2 2021 net profit declines 7.2% to $44.88m

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Is HDB resale a good investment?
OrangeTee’s Dallas Hassan and Huttons Asia Real Estate Groups’ Lee Sze Teck answer frequently-asked questions on HDB.
Spoof proof: How the new SMS Sender ID Registry prevents phishing
Phishing remains a huge problem in Singapore, with reported incidents jumping from 16 to 5,020 within four years.