In his June 30 note, ahead of Raffles Medical's 1HFY2023 earnings report on July 31, Tay notes that the company recorded a peak operating margin of 44.2% in 2HFY2022 ended Dec 2022, thanks to revenue from the government for providing various pandemic-related services.
CGS-CIMB's Tay Wee Kuang has reiterated his 'add' call on Raffles Medical Group (SGX:BSL
) , on the belief that the medical group could maintain its operating margins, even after the pandemic, when it enjoyed a big lift in earnings from providing testing and vaccination services.
Tay's $1.75 target price, which has been similarly maintained, is based on 24 x FY2024 EV/EBITDA, 0.5 s.d. above its historical mean.
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