Broker: DBS Group Research
Date of Report: 28 July 2026
Excerpt from DBS Group Research report.
Report Summary
Stock Focus: Raffles Medical Group Ltd (RFMD SP)
Action: BUY
Target Price: SGD1.20 (12-month target, revised from SGD1.25)
- Key Idea: Raffles Medical’s earnings are weighed by lower occupancy at transitional care facilities (TCF), but China operations are showing improved performance and narrowing losses. The company aims for EBITDA breakeven in China from 2H26 and profitability in 2027.
- Dividend & Buyback Policy: Dividend payout revised to at least 50% of sustainable earnings annually, supported by strong operating cash flows. Planned buyback of up to 100 million shares (~5.3% of ordinary shares) over two years should support the share price.
- Singapore Operations: Remain stable and cash-generative, forming the earnings anchor as China losses decrease and insurance segment moves toward breakeven.
- Forecasts: FY26/27 earnings reduced by 5–7% due to weaker TCF contributions. Dividend yield projected at ~3%, with reasonable risk-reward at current valuations.
- Key Risks: Delays in China hospital expansion, further decline in TCF, and unfavorable claims ratio in insurance.
- Top-line Outlook: China hospitals expected to be the key share price catalyst in the medium-term, while Singapore core remains resilient.
Above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can access the full research report from the broker’s website.
DBS Group Research research website
