RafflesMG - Raffles Medical kept at Hold by OCBC

Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD
Research House: OCBC

OCBC says Singapore's medical tourism business growing more slowly than some regional competitors, according to data from consultant Frost & Sullivan.



Keeps Raffles Medical Group (R01.SG) at Hold with $2.35 fair value; notes 35% of patient load made up of foreign patients.



Says 2010-2012 foreign patient arrival CAGR expected at 9%, “much lower than that earmarked for other regional countries.”



Adds, while this highlights intensifying regional competition, RMG competes largely on higher value-added services; says RMG will continue to strive to stay ahead of competition by rolling out more advanced medical techniques focused on depth, quality.



“We continue to like RMG’s good track record and cost effectiveness, but believe that current valuations already reflect these qualities and more (trading at 28.8x/25.0x FY10/FY11F EPS).



Shares +0.8% at $2.47.