Why Raffles Medical's 16% profit surge still disappointed analysts

They predicted a stronger 2H.

According to UOB Kayhian, Raffles Medical Group’s (RMG) 1H13 net profit of S$27.9m (+16% yoy) is in line with estimates, accounting for 43% of full-year estimates. 

Analysts expect a seasonally stronger 2H (particularly during holiday periods for non-critical treatment such as aesthetics, medical screening, etc) to lift earnings closer to our full-year forecast. 

"Revenue grew 12.1% yoy in 1H13 (S$167.9m), driven by solid growth in the hospital services segment (2Q13 up 16.8% yoy) that was attributable to higher volume of foreign patients and higher patient acuity, which came on top of an estimated 5-6% yoy rise in pricing. The healthcare segment (clinics) grew a modest 6.5% yoy," UOB Kayhian said.