Brokers' take
Raffles Medical Group | Buy Target price: S$1.72 April 4 close: S$1.445 RHB, April 4
Raffles Medical announced that it would develop a new hospital in Chongqing, China, which will have a capacity of 700 beds. The hospital, currently under construction, is expected to commence operations in phases from August 2018. While we make no changes to our forecast and TP at the moment - as management said that more details would only be given in 2Q17 - our early-stage forecast estimates this project to potentially add S$1.12 per share to Raffles Medical's value, based on a progressive five-year capacity ramp-up period. We keep our Buy call on the stock, with an unchanged TP of S$1.72. Including the 188 million yuan consideration payable for the land and construction incurred, management expects the development to cost around one billion yuan (S$203 million).
Raffles Medical Group | Sell Target price: S$1.36 April 4 close: S$1.445 CIMB, April 3
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