Raffles Medical Group (RMG) has announced a 4.8% year-on-year increase in its net profit after tax and minority interests (PATMI) for the first half of 2025, reaching S$32.1 million. This growth aligns with the company’s and Bloomberg’s consensus forecasts, despite challenges in its insurance services segment. The group’s revenue in China remained flat on a constant currency basis, but fell by 1.9% year-on-year due to foreign exchange effects, according to a CGS International report.
The insurance services segment reported a pre-tax loss of S$3.1 million, attributed to expected losses from new insurance contracts. However, RMG anticipates a potential write-back of these losses in the second half of 2025 if they do not materialise. The group’s healthcare services saw a decline in pre-tax profit margin, impacting overall profitability.
RMG is actively expanding its presence in China through strategic collaborations. In April, RafflesHospital Shanghai partnered with Shanghai Jiao Tong University School of Medicine to enhance resource sharing and elevate private healthcare standards. A similar partnership was established between RafflesHospital Chongqing and the First Affiliated Hospital of Chongqing Municipality. These collaborations aim to improve RMG’s reputation and bed utilisation in China.
Looking ahead, CGS International maintains its forecast for continued profit growth in the second half of 2025, supported by its strategic initiatives in China and potential re-rating catalysts, including the acquisition of American International Hospital in Vietnam. The company reiterates its target price of S$1.20, reflecting an 11.7% upside from the current price.
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