The Business Times

Raffles Medical H1 profit more than doubles to S$39.4m

Yong Jun Yuan
Published Mon, Jul 26, 2021 · 08:24 AM

BSL : BSL 0% on Monday announced a net profit of S$39.4 million for the six-month period ended June 30, 2021, more than double the S$17.2 million the previous year in part due to stronger revenue growth from supporting the government's Covid-19 initiatives. 

"In view of the current conditions, and barring unforeseen circumstances, including the worsening of the Covid-19 situation where the group operates, the group expects to be more profitable for FY2021 than FY2020," the group said in its results filing.

The group's earnings per share stood at 2.11 Singapore cents, more than doubled the 0.94 cent for the previous year while its net asset value per share came in at 48.77 cents in June, up from 48.22 cents in end December 2020.

Revenue for the period also grew 42.4 per cent to S$343.8 million, up from S$241.4 million from a year earlier mainly due to sales from Covid-19 related products and services

As such, revenue in the healthcare services and hospital services divisions grew by 65.4 per cent and 35.4 per cent respectively. Earnings before interest, taxes, depreciation and amortisation rose to S$74.5 million, up 78 per cent from S$41.9 million from a year ago

The group's revenue from its operations in Singapore for the six months ended June 30 was up 43.2 per cent to S$313.8 million compared with the same period the previous year. This is as the group continues to support the government's Covid-19 initiatives and expanded its operations beyond air-border screening and pre-event testing to include vaccination centres, pre-departure swabbing of cruise passengers, as well as operating dedicated polymerase chain reaction (PCR) testing centres.


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It also continues to take in patients from the Emergency Care Collaboration programme with the Ministry of Health, to support public hospitals when that have to be temporarily closed to the public to cater to Covid-19 patients. 

However, the outlook for medical tourism is less rosy. With travel restrictions in place, foreign patients now account for less than 10 per cent of the group's revenue, compared with around 30 per cent pre-Covid.

Executive chairman Loo Choon Yong said in a media briefing on Monday that while he expects medical tourism to rebound once the pandemic blows over, he reckoned that it will "not be as strong as before". He is forecasting the group's foreign patients to pick up to about 20 per cent of revenue once borders reopen. 

"Going forward, my own guess is that the surrounding countries (might) have gotten used to treatment at home because they cannot travel to Singapore," said Dr Loo at the media briefing. In addition, Singapore's healthcare is more expensive than other destinations such as Thailand and Malaysia. 

Meanwhile, the group continues to strengthen its presence in China. Revenue from operations in China was up 58.2 per cent to S$23.5 million. Dr Loo said at the briefing that the "environment is getting better" in China given that they are able to respond quickly to contain the virus when there are any outbreaks. 

Against this backdrop, both Raffles Hospital Chongqing and Raffles Hospital Beijing in China have seen improved patient loads. The two hospitals, along with Raffles Medical clinics in China have also stepped up to participate in the local government's Covid-19 vaccination efforts.

The group had also on Monday opened the newly completed Raffles Hospital Shanghai. The 770,000 square foot, 12-storey facility with a capacity of 400 beds, is located in Qiantan, Pudong, and will provide medical services ranging from 24/7 emergency medicine as well as inpatient and outpatient services.

"The opening of Raffles HospitalShanghai marks an important milestone for the group. It is a major step in our effort to provide international tertiary-level medical services to locals and expatriates living in Shanghai, including the surrounding provinces as well as international patients from neighbouring countries," said Dr Loo in a press statement. 

As Raffles Medical had earlier announced in February 2021, its directors have not declared any interim dividend as the group intends to consolidate its interim and final dividends into an annual core dividend of up to half its average sustainable profits after tax and minority interests with effect from FY2021.

Shares of Raffles Medical were trading up S$0.10 or 8.3 per cent to S$1.31 as at 11.58am  on Monday.


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