Raffles Medical Group will see a 10% drop in net profit in H122: forecast

0

Staff reporter

, Singapore

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.

Join the Singapore Business Review community

Since you are here…

…there are many ways to work with us to build awareness of your business and connect with your customers. Our team can help you create an advertising campaign, in print and digital, on this website and in a print magazine.

We can also organize a real or digital event for you and find keynote speakers as well as industry leaders, who could be your potential partners, to participate in the event. We also run rewards programs which give you the opportunity to be recognized for your achievements throughout the year and you can join this as a participant or sponsor.

Let us help you move your business forward with a good partnership!

Share.

Comments are closed.