Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD
OCBC Investment Research in an Aug 19 research report says: "Raffles Medical Group's (RMG) recent 2Q11 results were within our expectations, with revenue and net profit growing 14.3% and 10.1% y-o-y to $67.0 million and $11.6 million respectively.
"We reckon that RMG remains an attractive destination for wealthy medical tourists, given the relatively inelastic demand for healthcare services, coupled with the quality and complexity of procedures offered. Management guided that it would at least be maintaining its current level of dividends as a reward to its shareholders.
"In light of increasing uncertainty over the macro economy, we believe that the defensive nature of RMG's earnings would provide a safety net for investors. Our fair value estimate of $2.50 is based on 24x blended FY2011/FY2012F EPS, which implies a potential upside of 12.6%. UPGRADE TO BUY."
Company Name: RAFFLES MEDICAL GROUP LTD
| Research House: OCBC | Price Call: BUY | Target Price: 2.50 |
OCBC Investment Research in an Aug 19 research report says: "Raffles Medical Group's (RMG) recent 2Q11 results were within our expectations, with revenue and net profit growing 14.3% and 10.1% y-o-y to $67.0 million and $11.6 million respectively.
"We reckon that RMG remains an attractive destination for wealthy medical tourists, given the relatively inelastic demand for healthcare services, coupled with the quality and complexity of procedures offered. Management guided that it would at least be maintaining its current level of dividends as a reward to its shareholders.
"In light of increasing uncertainty over the macro economy, we believe that the defensive nature of RMG's earnings would provide a safety net for investors. Our fair value estimate of $2.50 is based on 24x blended FY2011/FY2012F EPS, which implies a potential upside of 12.6%. UPGRADE TO BUY."
No comments:
Post a Comment