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Singapore Stocks: Raffles Medical (BSL) Profit Tumbles on Lower COVID Revenues
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Singapore Stocks: Raffles Medical (BSL) Profit Tumbles on Lower COVID Revenues

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The Singapore-based healthcare company Raffles Medical reported a notable downturn in its financial performance for the second half of 2023.

In major news on Singapore stocks, Raffles Medical Group’s (SG:BSL) profit tumbled in its second-half results for 2023 due to lower COVID-19-related tests and revenues. The company witnessed a 63.8% year-over-year decline in its net profit of S$30.3 million for the six months that ended on December 31, 2023. BSL shares traded down by 3.81% after the announcement. In the last 12 months, the stock has lost over 30% of its value.

Raffles Medical Group is a healthcare company offering medical and hospital services across five Asian countries.

Revenue Plummets, Profits Slide

In the second half, Raffles Medical’s revenue declined by 18.6% to $336.2 million, as the company stopped COVID-19-related activities, which had previously boosted its financial performance. The full-year revenue dropped by 14.1% to $706.9 million. Meanwhile, net profit for the full year dropped by 37.1% to $90.2 million, compared to $143.2 million a year ago.

On the plus side, revenue from the company’s core hospital services remained strong, growing by 4.5% to S$330.6 million. The division’s profitability also saw significant growth, increasing 52.2% to S$32.6 million in 2023.

Moving ahead, Raffles Medical holds a positive outlook for 2024 and remains committed to pursuing growth strategies through its hospitals and clinic network. The company intends to bolster its capabilities across all operations by recruiting additional specialists and health professionals. Furthermore, the company aims to improve its teleconsultation platform to efficiently manage patient growth.

Raffles Medical proposed a final dividend of S$0.024 per share. This accounts for 49.4% of the company’s profit after tax and minority interests (PATMI) for 2023.

What is the Target Price for Raffles Medical Shares?

As per the consensus among analysts on TipRanks, BSL stock has been assigned a Moderate Buy rating based on a Buy recommendation from CGS-CIMB analyst Wee Kuang Tay. The Raffles Medical share price target is S$1.19, which signifies a potential upside of 13.78% from the current level.

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