UOBKayhian on 17 Feb 2015
FY15F PE (x): 30.2
FY16F PE (x): 25.7
No surprises in 2014. Raffles Medical Group’s (RMG) 2014 adjusted net profit of
S$64.6m (+6.7% yoy) came in broadly within our and market expectations. Despite
revenue growth outpacing staff costs, pressures from other operating segments resulted
in a 6.2ppt decline in operating margins. A total dividend per share of 5.5 S cents in
2014 implies a dividend payout of 48%.
Valuations are slightly stretched with the price rise over the past year. Fundamentals
remain promising, but much of the benefits have been priced in after a 21.6% price rise
over the past year. The stock currently trades at 27.7x 2015F PE, which is above +1SD
of 28.8x.
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