This is another overly beaten down counter that may be worth to take a second look!
It has been on a selling down pressure from 1.50 and gone down all the way to about 98 cents before making its way up to the current price of 1.04, looks.
The current price is trading at about PE 27x that may be viewed as a high PE counter but given that it is on a healthcare sector , it is generally viewed quite acceptable by the market industry.
Dividend of 2.5 cents.
Yield is about 2.4%.
Short term wise, I think it may likely re-attempt to take out 1.05 level.
Breaking out smoothly + good volume that may drive the price higher towards 1.10 then 1.12 with extension to 1.16 level.
Do take note that their China Hospital - RafflesHospital Chongqing has already began its operation since Dec 2018. While construction of RafflesHospital Shanghai, in Pudong, is underway.
The Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA)
increased by 1.6% from S$23.3 million in Q1 2018 to S$23.6 million for Q1 2019. The net
profit after tax decreased to S$13.7 million in Q1 2019, due to start-up costs for
RafflesHospital Chongqing.
On a comparable basis, excluding the results of
RafflesHospital Chongqing, the Group’s net profit after tax would have grown by 2.1%
instead of a decrease of 11.2%, and EBITDA would have been S$25.4 million – an increase
of 9.3% as compared to Q1 2018.
The gestation loss for RafflesHospital Chongqing is
within expectation.
The continued strong operating cashflows generated from the Group’s business operations
contributed to a healthy cash position of S$111.8 million. This was after accounting for the
payment of S$26.5 million for fixed assets under development as well as capital expenditure
for business expansion in the first quarter of this year.
Not a call to buy or sell.
Pls dyodd.
