Phillip Securities analyst Paul Chew downgraded the rating on Raffles Medical Group to a Hold today, setting a price target of S$1.02.
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Paul Chew has given his Hold rating due to a combination of factors affecting Raffles Medical Group’s current performance and future outlook. The company’s revenue and profit after tax and minority interests (PATMI) for the first half of 2025 were in line with expectations, but revenue growth was primarily driven by insurance services, which have shown improved profitability due to stricter claims assessments. However, the overall revenue growth was slower, partly due to a decline in foreign patient numbers, particularly from Indonesia, as more patients opt for healthcare services in Malaysia.
The performance in China has been challenging, with a slight contraction in turnover and the impact of a weaker renminbi. Despite these challenges, there is potential for improvement through collaborations with public hospitals to increase specialist visits. The company’s growth in Singapore is expected to be modest, with some potential upside from improved insurance profitability. Additionally, cost pressures are anticipated due to salary increases for public healthcare workers. Given these mixed factors, Paul Chew has downgraded the recommendation from Accumulate to Neutral, maintaining a target price of S$1.02.
Chew covers the Technology sector, focusing on stocks such as Adobe, Microsoft, and Salesforce. According to TipRanks, Chew has an average return of 20.0% and a 68.53% success rate on recommended stocks.
In another report released on July 29, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a S$1.00 price target.