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SINGAPORE : Healthcare services provider Raffles Medical Group has posted a third quarter profit of S$9.45 million - up 15.4 per cent on-year and largely in line with analyst expectations.
The group saw another record performance in terms of revenue for the quarter at S$55.4 million, an 8 per cent on-year increase, with all divisions contributing positively to its growth.
Raffles Medical credits the positive performance to improved operating efficiencies, higher patient load and operating leverage.
It also expects to perform well for the rest of the year. The fourth quarter has traditionally been its strongest quarter due to the year-end school holidays and seasonal flu.
Analysts are also optimistic about Raffles Medical's future performance, especially with signs of a recovering economy.
"Raffles Medical has a good business model, and this was reflected in how it has been able to continue to post good growth despite the economic downturn over the past 12 months," said James Koh, investment analyst with Kim Eng Research.
"We expect catalysts for the group's growth to include the addition of clinics, expansion of medical specialties, higher foreign-patient catchments and possible capital-management surprises," said Gary Ng, investment analyst at CIMB-GK.
Raffles Medical expects a possible second wave of H1N1 cases to provide an overall boost for its final quarter.
Dr Loo Choon Yong, executive chairman of Raffles Medical Group, said: "Earlier on, there were some fears and concerns, so people try to stay away from hospitals, clinics... for a short while. ... But soon ... people stayed away more because of economic reasons (rather) than the H1N1.
"Now with the H1N1 vaccine, together with Tamiflu and protectives that we sell, I think the net effect is positive... for our services."
Raffles Medical said it has seen a small drop in the number of local patients over the downturn, possibly due to economic reasons. However, this was offset by a larger increase in the number of foreign patients.
Revenue from the foreign patient segment grew by 16 per cent on-year and makes up one third of its patient population.
Indonesia makes up the largest share at 22 per cent. This is followed by the Russian Far East which Raffles Medical said is its fastest growing market - now making up 7 per cent.
The group believes the area has strong potential as the wealthy there are looking aboard, due to their lack of access to good local healthcare.
Raffles Medical said it is looking to China for overseas expansion possibilities and is carefully taking its time to look for a local partner. - CNA /ls
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