Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD
DBS Vickers Securities in a Nov 1 research report says: "Net profit grew 10% y-o-y on the back of 14% revenue growth. Revenue growth was contributed by Hospital services (+ 14.1%) and Healthcare services (+8.4%). 9M11 earnings now form 66% of our FY2011F, in line with previous year's 67%.
"We envisage competition to intensify as two new private hospitals are due to come on-stream in 2012/2013 (Connexion One - Farrer Park Hospital, Novena Hospital). We are hence cautious and expect CAGR growth rates over the next two years to moderate to 11% from the previous two years' 17%.
"No major change to our earnings estimates. RFMD is trading at 21.5x FY12F PE, in line with its historical mean. We roll over our earnings base to FY2012F (from blended FY11F/FY12F) to derive our target price of $2.48, pegged at 24x PE multiple. MAINTAIN HOLD."
Company Name: RAFFLES MEDICAL GROUP LTD
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 2.48 |
DBS Vickers Securities in a Nov 1 research report says: "Net profit grew 10% y-o-y on the back of 14% revenue growth. Revenue growth was contributed by Hospital services (+ 14.1%) and Healthcare services (+8.4%). 9M11 earnings now form 66% of our FY2011F, in line with previous year's 67%.
"We envisage competition to intensify as two new private hospitals are due to come on-stream in 2012/2013 (Connexion One - Farrer Park Hospital, Novena Hospital). We are hence cautious and expect CAGR growth rates over the next two years to moderate to 11% from the previous two years' 17%.
"No major change to our earnings estimates. RFMD is trading at 21.5x FY12F PE, in line with its historical mean. We roll over our earnings base to FY2012F (from blended FY11F/FY12F) to derive our target price of $2.48, pegged at 24x PE multiple. MAINTAIN HOLD."
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