Raffles Medical Group Ltd (2025): Full-Year Financial Analysis

Raffles Medical Group Ltd released its audited financial statements for the financial year ended 31 December 2025. The report reveals continued revenue growth, profit improvement, and a robust balance sheet, positioning the company as a resilient player in Asia’s healthcare landscape. Below, we break down the key financial metrics, analyze trends, and summarize notable corporate actions and outlook for investors.

Key Financial Metrics (FY2025)

Historical Performance and Trends

• Revenue grew 1.8% year-over-year, reaching S\$765.3 million in FY2025.
• PATMI saw a robust increase of 13.4% YoY, driven by improved hospital and insurance division performance and a S\$4.7 million fair value gain on investment properties.
• EPS rose to 3.81 cents, up from 3.35 cents a year ago.
• Cash from operating activities totaled S\$101.3 million for FY2025, supporting the Group’s strong balance sheet with S\$310.8 million in cash and equivalents.

Dividend Policy and Comparison

• The Board has recommended a final ordinary dividend of 3.0 cents per share, up 20% from the previous year’s 2.5 cents.
• This proposed dividend represents 84% of sustainable Group PATMI for FY2025.
• The dividend, if approved at the AGM on 24 April 2026, will be paid on 22 May 2026. Scrip Dividend Scheme is not applicable for this period.

Exceptional Items and Corporate Actions

• Fair value gain of S\$4.7 million on investment properties recorded in FY2025.
• Acquisition of Shanghai Qihua Hospital Co. Ltd. minority interest for S\$16.6 million, making it a wholly owned subsidiary.
• Repayment of loan to minority shareholder totaling S\$29.4 million.
• Share buybacks: S\$19.9 million spent, increasing treasury share holdings to 44.4 million (2.41% of total shares).
• Intangible asset and goodwill impairment loss of S\$316,000 for the year, significantly reduced from S\$2.6 million in the prior year.
• New subsidiary incorporated in China (Raffles HuKan Internet Hospital Co., Ltd.) for digital healthcare expansion.

Business Segment Performance

• Hospital Services: Revenue up 3.5% to S\$357.8 million; profit up 15.3% to S\$41.1 million with higher bill sizes and operational efficiencies.
• Healthcare Services: Revenue S\$285.9 million, down 3% YoY due to reduced service consumption but profitability broadly stable.
• Insurance Services: Revenue up 4.1% to S\$185.2 million, with a 50.6% improvement in profit due to better claims adjudication and cost control despite industry-wide higher loss ratios.
• China Operations: Revenue up 2.3% in local currency; strategic partnerships with leading hospitals to integrate international standards and local expertise.

Chairman’s Statement

“Global trade tensions and geopolitical uncertainties remain a challenge to the global economy. Volatility in financial markets and interest rate uncertainties will affect investor sentiments. The healthcare sector remains less cyclical because of stable demand for its services.

Singapore and China both face demographic challenges of aging population and falling birth rates. The Group operates in both of these geographies and we will respond to these trends and grow services that are in demand.

We will expand and grow our depth and breadth of services in the 14 cities of Asia where we currently operate. Globally, technological and social changes are gathering momentum. We will monitor these changes closely. We intend to be early adopters of appropriate AI applications in healthcare, both to improve efficiencies as well as to transform care and service delivery.

The RafflesHealthyLongevityCentre, scheduled to open in Q1 2026, is a physician-led, multidisciplinary service focused on helping individuals achieve healthier, longer lives. Through advanced diagnostics and evidence-based therapies, the Centre will provide personalised and preventive care tailored to each individual’s health profile.

Amidst rising healthcare costs and evolving patient needs, the Group, as an integrated healthcare provider, is well-poised to provide individuals and corporates with end-to-end insurance and healthcare solutions.

This year, the Group celebrates its 50th Anniversary of caring. We resolve to continue serving our patients and corporate clients with the same Compassion, Commitment, Excellence, through our Teamwork of physicians, nurses and healthcare managers adding Value to the lives of our patients (CCETV, our core values).

Barring unforeseen circumstances, the Directors are optimistic that the Group will be profitable in the current financial year 2026.”

Events & Outlook

• No significant legal disputes, natural disasters, or major macro policy changes disclosed for FY2025.
• Singapore’s Ministry of Health introduced a higher co-payment cap; RHI will launch a new compliant rider, with minimal expected financial impact.
• The Group plans expansion in digital healthcare and further adoption of AI technologies.
• Balance sheet remains strong, with cash and equivalents of S\$310.8 million and net assets value per share up to 57.52 cents.

Conclusion & Investor Recommendations

Overall, Raffles Medical Group Ltd demonstrates strong financial performance and outlook. Revenue, profits, and EPS are trending upward, dividend payout is increasing, and cash flow remains robust. The business is expanding into new areas such as digital healthcare and longevity services. Management’s tone is confident and forward-looking, despite external challenges.

• If you currently hold this stock: The company’s improving earnings, higher proposed dividend, and strategic expansion suggest it remains a solid holding for investors seeking growth and income. Consider holding your position, but monitor sector risks and macroeconomic conditions.
• If you do not currently hold this stock: Given the steady performance, rising dividend, and positive outlook, Raffles Medical Group is worth consideration for portfolio inclusion, especially for investors seeking exposure to resilient healthcare assets in Asia. However, due diligence is recommended before investing.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult their financial advisors before making any investment decisions.

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