Raffles Medical shares jump 6.7% on new dividend policy, share buyback plan
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Raffles Medical Group has revised its dividend policy to pay out at least 50 per cent of its sustainable earnings annually.
PHOTO: LIANHE ZAOBAO
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SINGAPORE - Private healthcare provider Raffles Medical Group has revised its dividend policy to pay out at least 50 per cent of its sustainable earnings annually.
It also plans to buy back up to 100 million ordinary shares over the next two years, the mainboard-listed company said in a bourse filing on Feb 24.
Shares of Raffles Medical jumped when trading opened, with the counter up five cents, or 6.1 per cent, at 87.5 cents at the midday trading break. The counter closed 6.7 per cent higher at 88 cents on Feb 24.
For the second half of 2024, the board has proposed a final dividend of 2.5 cents per share, up from 2.4 cents for the year-ago period.
Once approved by shareholders at its April 25 annual general meeting, the dividend will be paid on May 23, after books closure on May 15.
Raffles Medical also reported a 4.3 per cent rise in net profit to $31.6 million for the six months to December 2024, up from $30.3 million in the previous corresponding period.
Revenue for the second half of its 2024 financial year rose 14.8 per cent to $385.9 million from $336.2 million in the year-ago period.
For the full year ending Dec 31, 2024, net profit fell 31 per cent to $62.2 million, from $90.2 million in 2023. Revenue rose 6.3 per cent to $751.6 million, from $706.9 million in 2023.
The jump in revenue came on the back of a strong performance by the company’s hospital services division, which posted a 4.6 per cent year-on-year increase in revenue to $345.7 million, and a 9.5 per cent increase in profit to $35.7 million.
Its healthcare services division registered revenue growth of 4.1 per cent from $283.4 million to $295.1 million. But its profitability declined due to fewer government grants, and the cessation of Covid-19 services in 2024 compared with 2023.
Looking ahead, Raffles Medical said it is “optimistic” that the company will remain profitable in 2025.
“Although the strong Singapore dollar, coupled with higher healthcare services costs, has made Singapore a less attractive medical hub in the region, the group remains focused on exploring new markets and meeting the growing demand of an increased pool of patients seeking personalised healthcare and wellness services,” it added.
Raffles Medical said the company’s three general hospitals in Beijing, Shanghai and Chongqing demonstrated strong potential for growth and a positive outlook ahead.
The group’s regional revenue grew 10.1 per cent to $65.3 million in 2024, from $59.3 million in 2023, which the company credited to the Raffles Hospital brand “gaining greater recognition among more people seeking trusted healthcare in China”.
