Analyst Wee Kuang Tay of CGS-CIMB reiterated a Buy rating on Raffles Medical Group, with a price target of S$1.23.
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Wee Kuang Tay has given his Buy rating due to a combination of factors related to Raffles Medical Group’s solid fundamentals and improving earnings outlook. The company maintains a robust net cash position, which not only supports its ongoing share buyback programme but also provides room for additional shareholder rewards such as potential special dividends, particularly in conjunction with an upcoming anniversary year. On Tay’s estimates, this could lift the overall dividend yield to an attractive level, reinforcing the total return proposition for investors even after trimming near‑term EPS forecasts.
At the same time, Tay expects a clear inflection in profitability, with earnings projected to return to year-on-year growth in FY25 after two years of decline, supported by the continued turnaround of its China operations and seasonally stronger contributions from its insurance segment. While overseas assets have yet to fully reflect their potential in the income statement, the analyst highlights regulatory approval of the American International Hospital acquisition in Vietnam and any announcement of special dividends as key catalysts for a re-rating. Valuation remains supportive in his view, with the target price raised on the back of rolling forward the EV/EBITDA base year, underpinning his conclusion that the current share price offers an attractive entry point.
According to TipRanks, Kuang Tay is a 3-star analyst with an average return of 3.1% and a 47.46% success rate.