“We also await the completion of its Vietnam acquisition (subject to regulatory approval). We see risks of higher operating costs amidst a tight labour market for skilled healthcare workers, a still-low foreign patient load, and losses from the health insurance unit,” he adds.
RHB Group Research is keeping its “neutral” call and $1.06 target price on Raffles Medical Group (SGX:BSL
) (RMG), as analyst Shekhar Jaiswal is in the view that the group is lacking near-term catalysts.
“While 2024 earnings growth will be driven by improvements in Raffles Medical’s Singapore operations and lower losses from its China unit, longer-term earnings will be driven by its China operations, which are a few years away from breaking even in EBITDA terms,” he says.
