The Motley Fool

A Quick Overview Of How Raffles Medical Group Ltd Made Its Money In 2017  

Raffles Medical Group Ltd (SGX: BSL) runs hospital and healthcare services in Singapore. It also has a network of clinics in five countries and thirteen cities. In addition, the company is developing two hospitals in China.

For investors who would like to learn more about the company, we can start with a simple premise – how does it make its cash. The table below comes from Raffles Medical’s annual report.

Source: Raffles Medical 2017 Annual Report

From the above, we can see that Raffles Medical categorized its income sources into three groups.

Hospital Services

This segment accounts for the biggest share of the company’s revenue and profit before tax. The Raffles Hospital in Bugis falls under this category where it provides specialised medical services and operates medical laboratories and imaging centres.

Healthcare Services

Under this segment, the company operates medical clinics, and other general medical services. It also provides health insurance, trading in pharmaceutical products and diagnostic equipment, and management and consultancy services.

Brands under this umbrella like Raffles Medical, Raffles Dental, Raffles Health Insurance and Raffles Chinese Medicine.


Beyond healthcare, Raffles Medical also generates income from its investment properties. These properties include Raffles Hospital, Raffles Holland V, Raffles Medical Shanghai Hospital and Raffles Medical Chongqing Hospital (which is under construction).

Key takeaway

From the above, we can see how Raffles Medical derives its income from three segments, and that Hospital Services is by far the biggest profit contributor to the group in term of profit. In 2017, this segment accounted for S$62.5 million or about 74% of the total reportable segment profit before tax of S$84.9 million.

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.  

The Motley Fool’s purpose is to help the world invest, better. Like us on Facebook  to keep up-to-date with our latest news and articles.

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. Motley Fool has a recommendation for Raffles Medical Group Ltd.