RMG’s Singapore market remains weak.
Raffles Medical Group is expected to lose market share to IHH given the latter's better revenue growth in most of the preceding quarters.
According to Maybank Kim Eng analyst John Cheong, the topline growth for Singapore remains weak for RMG, with a 1% improvement YoY in 2Q17.
"Management reckons that the market remains challenging as Singapore’s high cost structure makes it less attractive to medical tourists," the analyst said, noting that the volume of medical tourists continues to decline.
Additionally, RMG's three consecutive quarters of weak revenue growth of -2 to +3% YoY could suggest structural weaknesses.
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