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PhillipCapital downgrades Thomson Medical to 'neutral', earnings recovery to be 'gradual'

The Edge Singapore
The Edge Singapore  • 2 min read
PhillipCapital downgrades Thomson Medical to 'neutral', earnings recovery to be 'gradual'
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Paul Chew of PhillipCapital has downgraded Thomson Medical to "neutral" from "buy" as the healthcare group reported 1HFY2025 results that were below expectations. 

For the six months to Dec 31 2024, TMG reported a net loss of $12.9 million, weighed down by a 90% "collapse" in its earnings in Malaysia operations, due to the loss of insurers and heavier discounting. 

TMG's Thomson Hospital Kota Damansara had become "reliant" on an insurance company that demanded steep discounts. "Without an insurance company, patients have to bear the cost out of pocket rather than cashless," explains Chew.

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