The 3 Different Ways Raffles Medical Group Ltd Makes Its Money

Raffles Medical Group Ltd (SGX: BSL) runs a hospital in Singapore (Raffles Hospital) and also provides healthcare services here through a wide network of medical centres and clinics. It has a network of medical centres and clinics in a number of other Asian countries too and has a hospital under development in China which is projected to be completed by 2018.

The company has been one of the best performing stocks in Singapore over the past five years with its share price having more than doubled. Given Raffles Medical’s strong stock price gains, I thought it’d be interesting to understand how it earns its keep.

Here’s a chart Raffles Medical’s different revenue segments and their contributions to the company’s overall revenue in 2015:

Source: Raffles Medical 2015 Annual Report

The company has three segments, namely, Hospital Services, Healthcare Services, and Investment.

The first segment accounted for the biggest share of revenue in 2015. It is where Raffles Medical provides specialised medical services, in addition to running its hospital and medical laboratory and imaging centre.

Healthcare Services is where the medical clinics business resides. The segment also houses Raffles Medical’s health insurance, pharmaceutical products, diagnostic equipment, and management and consultancy services businesses.

By breaking down Raffles Medical’s revenue sources according to its different business segments, investors can better evaluate the performance of each business segment and understand the risks and opportunities that come with the company.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Raffles Medical Group. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.