Raffles Medical is set to enhance its operations in China, with healthcare revenue expected to surpass pre-pandemic levels. The company has maintained its “BUY” recommendation, with a target price of SGD1.08, reflecting a 13% upside. This growth is driven by strategic partnerships with Shanghai’s Renji Hospital and the First Affiliated Hospital of Chongqing Municipality, which are anticipated to bolster capabilities and support margin improvements.
The expansion in China is crucial for Raffles Medical as it seeks to achieve EBITDA breakeven by 2026. The company’s healthcare and hospital segments are expected to provide resilience, with potential growth from earnings-accretive acquisitions. The scaling of operations post-COVID-19 is a significant factor in this optimistic outlook.
Analyst Shekhar Jaiswal noted that the partnerships in China should enhance Raffles Medical’s capabilities and support margin gains. The company’s focus on strategic alliances is expected to drive growth and improve financial performance in the coming years.
Raffles Medical’s valuation is currently at a discount compared to regional peers, offering an attractive investment opportunity. The company’s double-digit earnings growth forecast for 2025 to 2027 further underscores its positive outlook. As patient loads normalise and hospital revenue grows, Raffles Medical is well-positioned to capitalise on the expanding healthcare market in China.
In summary, Raffles Medical’s strategic partnerships and expansion in China are pivotal to its growth strategy, with significant implications for its financial performance and market position in the region.
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