It is important to know what a particular company does and how it makes its money before investing in it. Investing in a business without such a knowledge is akin to travelling to an unknown territory without a map.
On that note, let’s check out what business Raffles Medical Group Ltd (SGX: BSL), or RMG, is involved in and how it generates its revenue.
RMG is the largest private healthcare group in Singapore and prides itself as the only private medical provider here that owns and operates a fully integrated healthcare organisation. Established in 1976, it has a presence now in 13 cities across Asia, serving more than 2.2 million patients.
The annual report of RMG is able to clue us in on the business segments it has and the revenue raked in by each segment. Let’s take a look at the table below for the revenue contribution of each segment for the financial year ended 31 December 2016 (FY2016):
Source: RMG Annual Report 2016
Revenue from Healthcare Services comes from operations of medical clinics and other general medical services. It also provides health insurance, trading in pharmaceutical and nutraceutical products and diagnostic equipment, and is involved in management and consultancy services.
Next, the Hospital Services segment offers specialised medical services and is involved in the operation of hospital and business of medical laboratory and imaging centre.
Last but not the least, the Investment Holdings segment, as the name suggests, is used to own investments, mainly properties.
Behind every ticker symbol lies a living, breathing business. Buying a stock without fundamental knowledge of what the company does and how it makes money can be dangerous.
Once we know the basics of a company’s revenue streams, we can then delve into other aspects of the firm such as its profitability, strength of its balance sheet, its cash generating abilities, and more.
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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 Ltd.