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10 Quick Things That Investors Should Know About Raffles Medical Group Ltd’s Latest Results

On Monday, Raffles Medical Group Ltd (SGX: BSL) announced its 2018 third quarter (3Q FY18) earnings update. As a quick introduction, Raffles Medical runs hospital and healthcare services in Singapore. It also has a network of clinics in five countries and thirteen cities. Furthermore, it has two hospitals under development in China.

Here, let’s look at 10 things that investors should know from its latest earnings update:

1. Revenue for the quarter improved 1.2% year-on-year to S$121.0 million.

2. Operating profit climbed 4.5% year-on-year to S$19.2 million.

3. EBITDA (earnings before interest tax depreciation and amortisation) grew 8.5% to S$23.9 million.

4. Similarly, net profit grew 2.2% year-on-year to S$16.2 million.

5. Diluted earnings per share (EPS) was down by 1.1% year-on-year to 0.91 cents while net asset per share grew 2.6% to 42.51 cents.

6. Operating margin percentage for the quarter was 15.9%, marginally higher than that of 15.4% in the same period last year.

7. For the quarter, Raffles Medical generated operating cash flow of S$31.7 million, up from S$24.5 million last year. The improvement in operating cash flow was driven by higher profitability and better working capital management.

8. Raffles Medical’s borrowing stood at S$95.7 million while its cash and cash equivalents was S$102.6 million, as of 30 September 2018, giving it a net cash position of S$6.9 million.

9. Revenue from Healthcare Services division grew 8.0% while revenue from Hospital Services division declined by 3.8%, respectively, as compared to the same period last year. The increase in the former was due to the addition of new corporate clients and the new contract to provide Air Borders screening services. Meanwhile, the fall in the latter was due to refurbishment of the current inpatient facilities.

10. Dr Loo Choon Yong, Executive Chairman commented:

“RafflesMedicalGroup will continue to grow both locally and regionally. We are deepening and widening our service offerings to meet the needs of our patients and clients. The imminent opening of RafflesHospital Chongqing marks the beginning of a timely move to serve the growing demand for high quality healthcare in China.”

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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.