Brokers' take

Raffles Medical Group (RMG) | Buy (maintained) Target price: S$1.30 Dec 5 close: S$1.20 UOB Kay Hian, Dec 5

The Ministry of Health recently published fee benchmark guidelines for surgical procedures in a bid to contain exorbitant fees. However, the benchmark is non-binding, and the effects may not be largely be felt for RMG.

Compared with its private healthcare peers in the market, RMG fees are generally in the mid-range. Hence, any curbs to high medical expenses are unlikely to hit RMG proportionately.