During its FY2024 results, RMG announced its intention to buy back up to 100 million shares in FY2025. However, the group only bought back about 20 million shares thus far. “Given the group’s net cash position of about $283 million (ex lease liabilities) as of 1HFY2025, we believe RMG could enhance shareholder returns through other means such as special dividends,” says Tay.
CGS International is reiterating its “add” recommendation on Raffles Medical Group (RMG) with a higher target price of $1.23 from $1.20 previously, on the back of stronger y-o-y earnings in 2HFY2025, continued turnaround in China operations and a seasonally stronger contribution from the group’s insurance business.
Analyst Tay Wee Kuang is revisiting the investment thesis for RMG, expecting investor sentiment to improve with the resumption of y-o-y earnings growth in 2HFY2025/FY2025, after two consecutive years of decline.
