This is due to the expected drop in revenue from the hospital’s COVID-19 services.
Raffles Medical Group will likely see a 10% decline in net profit in the first half (H1) of 2022, according to CGS CIMB.
In a report, the analyst cited a lower contribution from the hospital’s COVID-19 department as a contributor to the decline.
“We expect COVID-19 related services revenue to decline 60% in our FY22-24F forecast,” CGS CIMB said.
READ MORE: Raffles Medical Group’s earnings per share estimate cut 8-12% for FY22/24
What could offset the drop in the contribution of the hospital’s COVID services in the first half of 2022 is the return of acute admissions to private hospitals or specialized outpatient consultations.
Citing data from the Ministry of Health, the CGS CIMB said acute admissions to private hospitals or specialist outpatient visits returned to 84% and 97% of pre-COVID levels, respectively, in May.
“We believe the recovery was driven primarily by the return of domestic patients undergoing elective treatments that had been postponed for the past two years, and the partial return of overseas patients as medical tourism intensifies as Singapore has reopened its borders more widely in April,” the analyst said.
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