MENU

9 Quick Things Investors Should Know About Raffles Medical Group Ltd’s Latest Earnings Update

Last week, private healthcare services provider Raffles Medical Group Ltd (SGX: BSL) released its 2018 first quarter earnings update. Here are 10 key highlights from the company’s latest results:

1. Revenue for the quarter improved by 4.6% year-on-year to S$120.2 million.

2. Operating profit improved by 4.4% year-on-year to S$18.9 million.

3. The operating margin for the first quarter of 2018 was 15.7%, slightly lower than the 15.8% seen a year ago.

4. Net profit attributable to shareholders inched up by 1.7% to S$15.8 million.

5. Similarly, diluted earnings per share (EPS) was up by 1.1% year-on-year to 0.89 cents, while the net asset value per share grew 2.5% to 42.49 cents.

6. For the first quarter of 2018, Raffles Medical generated operating cash flow of S$24.0 million, up 31.9% from S$18.2 million a year ago. The improvement in operating cash flow was driven by the company’s higher profitability and better working capital management.

7. As of 31 March 2018, Raffles Medical’s balance sheet housed a net cash position of S$22.3 million (total debt of S$71.7 million, and cash and cash equivalents of S$94.0 million). The balance sheet had improved sequentially, when the net cash position was at S$19.1 million as of 31 December 2017.

8. Revenue from the Healthcare Services division and Hospital Services division grew by 6.8% and 4.2% respectively, during the reporting quarter. Growth in the Healthcare Services division came mainly from an increase in the local patient load, as well as a new contract providing air-border screening services. Meanwhile, the Hospital Services division was driven by a higher local patient load.

9. The company provided the following guidance on its outlook in the earnings update:

“RafflesMedical has started a 5-year partnership with Ministry of Health (MOH) and the Agency for Integrated Care (AIC) from 1 January 2018 through three Primary Care Network1 (PCN) clusters around Singapore to better manage chronic conditions of Singaporeans and Permanent Residents. The PCN Scheme will complement the existing Community Health Assist Scheme / Pioneer Generation, Screen For Life (SFL) and National Adult Immunisation Scheme to provide accessible and comprehensive family medicine to the public.

RafflesHospital Extension has been completed and RafflesSpecialistCentre opened on 22 January 2018. With the relocation and expansion of 15 specialist centres to the new RafflesSpecialistCentre, RafflesHospital is undergoing refurbishment to open up new wards to increase inpatient capacity and expand outpatient primary care centres to serve the growing needs of our local and foreign patients.

Construction of RafflesHospital Chongqing and procurement of equipment are progressing according to plans. Recruitment of International and Chinese physicians as well as hospital management staff have begun and the response has been positive. RafflesHospital Chongqing is planned to open in the fourth

quarter of this year. RafflesHospital Shanghai, in Pudong Qiantan, is planned for opening in the second half of next year. Construction is also progressing according to plans.”

The Behind-the-Scenes Story on Motley Fool Singapore's Biggest Winner Ever

Members of David Kuo's personal investing club Stock Advisor Gold were recently rewarded with the biggest winner Motley Fool Singapore has seen to date - an 88% return in just 19 months! In a special, 100% FREE report we've put together, we take you behind the scenes to show you exactly how we first uncovered this stock... every article and piece of research we released on it... and what ultimately led to our decision to SELL for an 88% gain. Click here to claim your copy!

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