Raffles Medical Group: Solid Cash Generation but Tepid Growth Keeps Rating at Hold

Analyst Paul Chew of Phillip Securities maintained a Hold rating on Raffles Medical Group, with a price target of S$1.02.

Paul Chew has given his Hold rating due to a combination of factors surrounding Raffles Medical Group’s mixed operating outlook. While FY25 revenue and core profit were broadly in line with forecasts and hospital services delivered solid growth driven by higher pricing, expanded specialist offerings, and stronger insurance and corporate flows, overall top-line momentum remains modest and uneven across segments.

Chew highlights that Singapore operations face subdued patient volumes, intensifying price pressure from insurers, and competition from new public hospitals, which together limit the company’s ability to lift bill sizes and scale margins. In China, losses should gradually narrow, but the slower‑than‑expected ramp‑up in doctors and specialists delays breakeven, leaving group growth tepid despite strong free cash flow generation, a sizeable net cash position, and an unchanged DCF‑derived target price of S$1.02 that supports, but does not strongly enhance, the current valuation.

In another report released yesterday, TipRanks – OpenAI also reiterated a Hold rating on the stock with a S$1.00 price target.