SINGAPORE: Raffles Medical Group’s shares jumped 6.1 per cent or five cents higher to 87.5 cents by midday on Feb 24, with 4.5 million shares traded, after it updated its dividend policy, committing to paying at least 50 per cent of its sustainable earnings each year, as reported by The Straits Times.
The private healthcare provider also announced plans to buy back up to 100 million ordinary shares over the next two years, according to its filing with the Singapore Exchange on Feb 24.
For the second half of 2024 (H2 2024), the company proposed a final dividend of 2.5 cents per share, an increase from 2.4 cents in the previous year. The dividend will be paid on May 23 if shareholders approve it at the annual general meeting on April 25. The books will close on May 15.
The group reported a 4.3 per cent rise in net profit for H2 2024, reaching S$31.6 million, up from S$30.3 million in the same period the year before. Revenue for the period also grew 14.8 per cent to S$385.9 million, up S$336.2 million previously.
For the full year ending Dec 31, net profit dropped 31 per cent to S$62.2 million from S$90.2 million in 2023. Meanwhile, its revenue increased 6.3 per cent to S$751.6 million, up from S$706.9 million the year before.
The company’s hospital services division contributed to the revenue growth, with a 4.6 per cent year-on-year (YoY) increase to S$345.7 million, with profit rising 9.5 per cent to S$35.7 million. Its revenue rose 4.1 per cent, from S$283.4 million to S$295.1 million, but its profitability declined due to fewer government grants and the end of Covid-19-related services in 2024.
Raffles Medical said it remains confident about its profitability in 2025 despite challenges such as a strong Singapore dollar and rising healthcare costs, making the country a less attractive medical hub. The group plans to expand into new markets to meet the growing demand for personalised healthcare and wellness services.
Its three general hospitals in Beijing, Shanghai, and Chongqing are expected to drive future growth. Revenue from its regional operations in China rose 10.1 per cent in 2024, reaching S$65.3 million, up from S$59.3 million the previous year after “gaining greater recognition” among Chinese seeking trusted healthcare. /TISG
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