Doctor fined for giving too few MCs.
SINGAPORE: A doctor at Raffles Hospital has been convicted of professional misconduct and suspended for six months, after he failed to comply with the " applicable standard of conduct" in the management of a construction worker who had a fractured hand.
In a press release on Tuesday (May 10), the Singapore Medical Council (SMC) said that Dr Wong Him Choon' s conduct was an " intentional and deliberate departure from the standards observed or approved by members of the profession of good repute and competency" .
In its statement, SMC said the patient was brought to Dr Wong Him Choon on Sep 3, 2011 by his supervisors after an accident at the construction site, where the worker suffered an injury to his right hand.
Dr Wong, 51, assessed that the patient had sustained a distal radius fracture and a metacarpal fracture, and performed a surgery on his hand early the next day. The worker was discharged on day of the operation, and a medical certificate was issued to cover his hospitalisation from Sep 3, 2011 to Sep 4, 2011.
The doctor also certified his patient fit for light duties for one month from Sep 5 &ndash the day after his surgery. Dr Wong also reviewed the patient on Sep 7, 2011, and scheduled a further review on Oct 5, 2011.
Featured Singapore Stock #2 &ndash Raffles Medical Group
Analyst Report: Ser Jing Chong
What Raffles Medical Group Does
Raffles Medical Group is a leading integrated healthcare services provider based in Singapore. It was founded 40 years ago in 1976 by two young doctors &ndash Dr. Loo Choon Yong and Dr. Alfred Loh &ndash as a two-clinic practice.
Today, Raffles Medical Group has a 380-bed hospital in Singapore &ndash that would be Raffles Hospital, which officially opened in 2002 and is located along North Bridge Road &ndash and a network of around 100 multi-disciplinary clinics in Singapore and across Asia. Territories that Raffles Medical Group operate in include Cambodia, China, Hong Kong, Japan, and Vietnam. In addition, the company provides healthcare insurance services and nutraceutical products.
Dr. Loo and Dr. Loh are both still integral to the company. The former is the executive chairman while the latter is the senior clinical director.
| Market cap | S$2.64 billion |
| Cash/Debt | S$110.6 million/S$32.2 million |
| Revenue (TTM) | S$432.4 million |
| Earnings (TTM) | S$69.8 million |
| Price-to-earnings ratio (TTM) | 37 |
| Return on equity (TTM) | 11.6% |
Why We Like Raffles Medical
Raffles Medical Group has some clear plans for growth. Let&rsquo s look at just two: First, it&rsquo s currently expanding the floor area of Raffles Hospital by around 80% with an expected completion in 2017 second, it&rsquo s developing a 400-bed international hospital in Shanghai, China, that&rsquo s projected to be completed in 2018.
It&rsquo s no use erecting healthcare facilities if no demand is there. Fortunately, there are powerful societal trends that actually point to the potential for rising demand for healthcare services in the region: A growing and aging population.
In the case of Singapore, the population is projected to grow to between 6.5 million and 6.9 million by 2030 there are currently around 5.5 million people living in Singapore. Meanwhile, 1 in 8 Singaporeans today are above 65 years old and this is expected to increase to 1 in 4 by 2030. For a wider perspective, the population in Asia is projected to rise by nearly 20% from 2015 to 2050. Over the same period, the percentage of those who are 60 years old and above is expected to climb from 12% to 25%.
We think Raffles Medical Group has a great chance to capture the opportunity because of its history of executing a solid business. Here are a few examples.
First, the company&rsquo s Hospital Services business segment (which houses the activities at Raffles Hospital) has seen its revenue soar nearly six-fold from S$46.5 million in 2004 to S$268.4 million in 2015 revenue has also grown in each year over that period.
Second, while it&rsquo s nice to have favourable macro drivers, strong revenue growth, and a well-liked brand, profits and the efficient use of shareholder&rsquo s capital matter too. On these fronts, Raffles Medical has delivered. Over the past five years from 2010 to 2015, its profit had grown at a compound annual rate of 8.9%. It has also achieved a healthy average return on equity of 13.8% over the same period while carrying a rock-solid balance sheet that has had minimal debt in relation to cash (its highest year-end total debt to cash ratio in that period was just 43%).
Areas of Concern
We think concerns are centred largely on two areas: Valuation and business execution.
At the moment, Raffles Medical Group is trading at 37 times trailing earnings, which is around thrice that of the market average. Highly-valued stocks need not be dud investments &ndash but it does mean that such companies need to see their businesses grow materially in order to meet those high expectations.
As for business execution, the Shanghai hospital bears watching. It&rsquo s an integral part of Raffles Medical Group&rsquo s growth plans, but the company has no prior experience with running a full-scale hospital outside Singapore&rsquo s shores. Getting the hospital up-and-running in a profitable manner may be tricky.
The Stock Advisor Gold Bottom Line
Over the 14 years Raffles Hospital opened, it&rsquo s safe to say the company has built the hospital into a thriving business, considering revenue from that segment has increased by nearly six times from 2004 to 2015. With such a track record, it&rsquo s not hard to see why the market has placed a high premium on the company&rsquo s share price. And while we&rsquo re always vigilant about valuation at Stock Advisor Gold, we think Raffles Medical Group&rsquo s history of success &ndash coupled with its compelling growth plans and the presence of powerful socio-economic tailwinds &ndash tilts the risk-reward relationship heavily in our favour.
https://www.fool.sg/stock-advisor-hub/?mc_cid=25ed95c1bf& mc_eid=6d15bd5357#raffles-medical-group
This counter seems strong and managed to push up a little despite the other counters being all red today. At the uptrend support line, may head higher and continue in the trend with its strong management, developments and increased cash.
Raffles Medical (RFMD SP) BUY (Maintained)
1QFY16 Results Flash: In line results as acquisitions being phased in
Analyst: Andrew Chow Tel: (65) 6590 6633 / Thai Wei Ying Tel (65) 6590 6624
| Company | Share price(S$) | Recommendation | Our Target Price(S$) | Within Expectation (Y/N) | EPS 1QFY16 (cents) | 1QFY16 EPS yoy (%) | Highlights of Results |
| Raffles Medical | 4.59 | BUY | 5.07 | Y | 2.7 | 2% | See attached comments |
RAFFLES MEDICAL 1QFY16
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- No surprises as 1Q is seasonally weaker. The group' s 1QFY16 net profit grew 3.7% yoy to S$15.5m was in line with our expectations, accounting for 21.3% of our full year estimates. 1Q results tend to be seasonally weaker, accounting for 19-22% of full year estimates as patients defer non-critical treatments due to the festivities.
- Phasing in new acquisition. Group turnover grew 23% yoy but this was outpaced by a 27.5% yoy rise in staff. As a result of this and higher inventories and consumable costs, operating margins slipped 2.6ppt to 16.0%. This is not a surprise as the group' s new acquisition International SOS (MCH) was newly consolidated and the synergy is not yet apparent (MCH has 10 clinics in China, Cambodia and Vietnam). Excluding MCH, RMG' s revenue and operating profit would have grown 11.6% and 7.8% respectively.
- Getting ready for new capacity. In addition, staff costs were also boosted as RMG recruited more new specialist and consultants ahead of its new capacity at Raffles Holland V, Raffles Orchard and by 2017, the Raffles Hospital Extension.
- Strong cash generation. The group' s net cash increased from S$54m (as at Dec 2015) to S$78m as at March 2016 due to strong cash generation, with 1QFY16 operating cashflow of S$34.4m.
- Valuation. We maintain our BUY rating and forecasts for now pending an analyst briefing later this morning. We have a DCF-based target price of S$5.075/share.
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Please click here for report: https://researchwise.dbsvresearch.com/ResearchManager/DownloadResearch.aspx?E=bjagfkfdhj g" target="_blank">Raffles Medical: Reasonable start to 2016
Raffles Medical (RFMD SP): HOLD Analyst Andy Sim +65 6682 3718 andysim@dbs.com Reasonable start to 2016
1Q16 within expectations net profit up by 4%. Raffles Medical&rsquo s 1Q16 net profit registered a growth of 3.7% to S$15.5m, while revenue grew by 23% y-o-y to S$116.9m. The strong growth in revenue was equally helped by recent acquisitions, as well as contributions from its Healthcare Services and Hospital Services divisions. Top-line growth was driven by both divisions with Healthcare Services and Hospital Services divisions registering 36.3% and 15.2% respectively. Hospital Services revenue growth was contributed evenly by higher patient volumes and revenue intensity. Management also shared that foreign patient volumes still registered growth. Excluding recent acquisition, revenue growth at 11.6%. Excluding the recently acquired International SOS (MC Holdings) Pte Ltd and its subsidiaries (MCH), the Group&rsquo s revenue would have been at S$106m, registering a growth of 11.6%. MCH&rsquo s revenue is estimated to be at S$10.9m and register a minor operating loss of S$0.32m. Excluding MCH, the Group&rsquo s operating profit growth would have been at 7.8% instead of 6%. Margins dipped to 16% on MCH, higher costs. EBIT margins dipped by 260bps to 16% in 1Q16, from the same period a year earlier. This arose from the consolidation of MCH and higher costs in relation to projects undertaken by the Group, for instance Raffles Holland V and the newly established medical centre at Shaw Centre. We believe margins should progressively improve over the course of the year. Management indicated that the medical centre at Shaw Centre was still registering losses (though this has narrowed) and opines that it could turn profitable by 3Q16. Expansion project in Singapore remains on track, while Shanghai Hospital' s expected completion is deferred to late 2018 instead. Raffles Holland V has obtained its TOP in March, and the fitting-out period for tenants that have signed is currently underway. The development is expected to be opened for business in June 2016, while leasing activities and discussions with potential tenants are still ongoing. The Raffles Hospital extension is progressing according to schedule and is set to be completed by mid-2017. However, we note that its Shanghai Hospital&rsquo s completion is now projected to be in late 2018, instead of mid-2018 as was previously expected. 3-for-1 share split approved effective 11 May 2016. The proposed share split announced during its 4Q15/FY15 results back in Feb&rsquo 16 has been approved by shareholders, and will be effective from 11 May 2016. Our TP will be adjusted accordingly from then. There will be no impact on our EPS growth estimates or valuation arising from this exercise. Maintain HOLD, TP unchanged at S$4.30. We maintain our HOLD recommendation with an unchanged TP of S$4.30. While we like the Group&rsquo s relatively resilient model and its exposure to the healthcare sector, we believe its current valuation at 36.5x/34.5x FY16F/17F PE has largely priced in the positive attributes. Moreover, growth is projected to be below historical average trend from FY16F-18F on the back of the macro-economic headwinds and start-up costs for its expansion projects being undertaken. Upside risks to our recommendation lies in further accretive acquisitions and/or JVs/strategic alliances for entry into new markets. |
Why all the big guns are offloading this stock????????????????????? You see the sellers
Short to earn to help foot expensive medical costs?
so you are the one shorting RM today??????? If you have sold at 4.18 you are already better off. Just a curiosity why are you doing that?
so you are the one shorting RM today??????? If you have sold at 4.18 you are already better off. Just a curiosity why are you doing that?
400 magic number to look out.....
Time to look into Raffles Medical, trending positive.
Time to look into Raffles Medical, trending positive.
