Raffles medical 2017 AR review

High level summary of raffles medical

1) Financial health
Strong operating cash flow
Portfolio of investment properties (freehold clincs), which are marked to market and a potential asset play
Increase DPS
Increase revenue 0.8%, increase NPAT 1.1%

Strong insider shareholding and insider uptake of share options

Potential asset play with strong portfolio of freehold and long lease investment properties and clinics (marked to market, might be illiquid)

Drawing down in free cash flow and increase on short term and long term unsecured  debt

2) Risks and prospects (to be raised during AGM)
2017 is a challenging year for medical tourism and may have understated it's potential. Do you foresee and short term or long term recovery? Whom are your possible competitors?

Scored high in client satisfaction index.

Expanding network and services, opening 4 clinics. Also expanding in Hong Kong and Indochina.
Is recruitment efforts in Chongqing going well especially for the 700 bed hospital? Do you foresee any immediate challenges to Chongqing hospital once it is opened?
Expansion efforts and cost management. Is it being handled well.

Not familiar with Insurance arm
What kind of insurance is it underwriting? Does it have a high risk of payment?
Do you foresee any possible risk that may lead to huge payouts (think insurance business large payouts in Singapore)
Is it profitable so far?

Key projects
Rejuvenate existing clinics at hospital

e-commerce platform to sell supplements, medicine and services

SMS queue system to improve efficiency

Medicine concierge services - real time medical advise from doctors at another physical location

Partnership as a one stop corporate solutions. Including TCM and dental

SCDF partnership to provide emergency care, access to A&E to urgent patients at subsidised rates

Partnership with PG scheme and CHAS scheme

Opening of clinics at 6 cities in China to better manage it's branding and exposure

Raffles hospital extension - end 2017
Raffles specialist centre - 22 Jan 2018

700 bed Chongqing -  4Q 2018 , started on recruitment efforts

400 bed shanghai - 2Q 2019

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