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Analysis of Raffles Medical Group
08 Sep 2020 (124 views)

I wish to give an analysis of Raffles Medical Group. About 10 years ago, I invested in this stock for a year and made a modest profit. Since then, I did not have any shares in this company.

The founder of the company, Dr. Loo Choon Yong, is a personal friend and former class mate. He has built up a successful business in the medical field. 

The highest price for this stock during the past 5 years was $1.60. The current price is $0.80. It has dropped 50% from its peak.

At the current price, the price earning ratio is 29.6 times and the dividend yield is 3.13%. 

The revenue of this group for the past four years have increased slightly. However, the net income had dropped from $70 million to $50 million over the past three years. 

The drop in the net income is primarily due to their expansion in China. Here is a media release from the company about this significant development. Click here

My assessment is that the expansion has been a drain on the net income of RMG during the past two or three years. The healthcare business in China should be very profitable in the years ago, due to the economic growth, higher living standards and the aging population in China. This should be reflected in better net income for RMG in the years ahead. See this report

I had expected the net income of RMG to turn around in 2020.  This will be delayed by the pandemic for a year or two. Longer term, I think the prospects for RMG should be good.

There was a news report in March 2020 that the co-founder of RMG, Dr. Loo, invested  $738,000 in the shares of RMG. He must have felt that the company has been undervalued by the market. 

Most recent financial report.

I will be monitoring this stock before I make an investment.

 



Analysis of Raffles Medical Group
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I wish to give an analysis of Raffles Medical Group. About 10 years ago, I invested in this stock for a year and made a modest profit. Since then, I did not have any shares in this company.

The founder of the company, Dr. Loo Choon Yong, is a personal friend and former class mate. He has built up a successful business in the medical field. 

The highest price for this stock during the past 5 years was $1.60. The current price is $0.80. It has dropped 50% from its peak.

At the current price, the price earning ratio is 29.6 times and the dividend yield is 3.13%. 

The revenue of this group for the past four years have increased slightly. However, the net income had dropped from $70 million to $50 million over the past three years. 

The drop in the net income is primarily due to their expansion in China. Here is a media release from the company about this significant development. Click here

My assessment is that the expansion has been a drain on the net income of RMG during the past two or three years. The healthcare business in China should be very profitable in the years ago, due to the economic growth, higher living standards and the aging population in China. This should be reflected in better net income for RMG in the years ahead. See this report

I had expected the net income of RMG to turn around in 2020.  This will be delayed by the pandemic for a year or two. Longer term, I think the prospects for RMG should be good.

There was a news report in March 2020 that the co-founder of RMG, Dr. Loo, invested  $738,000 in the shares of RMG. He must have felt that the company has been undervalued by the market. 

Most recent financial report.

I will be monitoring this stock before I make an investment.