Broker: Maybank Research Pte Ltd
Date of Report: July 28, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
Raffles Medical Group (RFMD SP) – Action: BUY | Target Price: SGD 1.09 (previously SGD 1.20)
Maybank maintains a BUY rating on Raffles Medical Group, but lowers the DCF-based target price to SGD 1.09, implying a 20% upside from the last close. The reduction in target price and earnings estimates follows a weaker-than-expected 1H26, mainly due to lower revenue and margins from its Healthcare Services Division, particularly transitional care facilities. Despite this, the company’s hospital division in Singapore and China performed well, with improved profit and operating leverage. The China operations remain on track for a breakeven by FY27E, and management reaffirms the turnaround for Shanghai Hospital by end-2026.
Key highlights:
- 1H26 PATMI was SGD 29m (-9.6% YoY), below consensus expectations, driven by weak performance in Healthcare Services, but hospital profits rose 11% YoY.
- China revenue grew 13% YoY with ongoing cost optimisation and volume gains; breakeven targets unchanged.
- Strong financial position: fully repaid bank loans and net cash of SGD 262.3m, providing flexibility for capital management.
- FY26-28E core net profit forecasts cut by 16-18%, with stable dividend payout maintained.
- Key risks include further delays in China recovery, competitive pressures, and loss of market share in medical tourism.
Actionable Insight: Investors looking for exposure to the healthcare sector with a strong balance sheet and regional growth prospects, particularly in China, should consider Raffles Medical Group with a BUY call and a target price of SGD 1.09.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can access the full research report from the broker’s website.
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