Raffles Medical Group (RMG) is a private healthcare provider in Asia, operating in Singapore, China, Japan, Vietnam and Cambodia. It has a network of clinics with family physicians, specialists and dental surgeons, and owns Raffles Hospital, a tertiary care hospital in Singapore, which accommodates surgical centres, medical laboratories and 24 specialist centres in various areas like Obstetrics & Gynaecology, Cardiology, Oncology and Orthopaedics.
RMG has a market capitalization of around $3B and the latest FY22 results have been reasonably good. Revenue grew by 6% to $767M and profit grew by 72% to $144M. Earnings per share grew 72% to 8c, while Net Assets Value grew 6% to 55c. A final divdend of 3.8c has been declared and will xd on 9 May.
Taking a closer look at its P&L, shows the strong increase in profit came mainly from a sharp drop in Staff costs ($45M) and Inventories and consumables used ($21M).
From the long term chart, RMG price has performed very well, growing from $0.2+ in 2009 till around $1.5 in 2016 and 2023. There were two attempts to break $1.5+ range n 2015-2016 before succumbing to profit taking to $1. Then Covid struck in 2020, and the price is again attempting to break $1.5+ resistance level.
Moving Average MA50 seems to be sloping up and supporting to push price upwards. Volume is slightly above 20days average. Stochastic oscillator is also trickling up to the overbought region. All-in-all, Technical Indicators do not seem to point to a strong punch through resistance level of $1.5+
Singapore & China reopening from Covid, could push its financials better in the year ahead.
What do u think? Let me know in your comments below 😍
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