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Raffles Medical Group *Official* (SGX: BSL)

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Old 30-10-2013, 11:36 AM   #16
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When RafflesMG was 1.3 plus, I watch-listed it with a view to buying, but somehow had some doubts, but I advised my wife to buy. She didn't trust me. I also didn't trust my own wisdom. We both never bought. Served her right!

Today, my regret is BIG BIG!
Lesson is, Dont Look Back. If you look back, it will be more heart pain. Never buy, price shot up. Sell already, price also shot up. Buy already, price shot down.

Question now is, will you buy RMG at current price? This is more important.
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Old 30-10-2013, 11:40 AM   #17
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Saw it at 2.99 but waiting for more reduction. It never came. Now 3.17, suck thumb.
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Old 30-10-2013, 01:02 PM   #18
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Lesson is, Dont Look Back. If you look back, it will be more heart pain.
Agree. If I had bought then and the price goes down, I would then be banging myself for 'trusting' my foolishless!

The true mark of a seasoned, shall I say mature investor, is the ability to overcome this 'ai yah!' mindset and accept this kinda thing with serenity.
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Old 30-10-2013, 01:36 PM   #19
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Raffles Medical Group is trading at 28 times the earnings, and more than 4 times the book value and I think the dividend also not so attractive (at least SH got better dividends for the valuation). Me thinks there are better options out there.

Yes, with ageing population comes increased healthcare cost but whether a company can take advantage is another question. There is always a right sector and a right company within the sector at the right price. The stars must align woh.
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Old 30-10-2013, 01:37 PM   #20
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RMG looking for expansion into China. Great growth potential
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Old 30-10-2013, 01:39 PM   #21
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Raffles Medical Group is trading at 28 times the earnings, and more than 4 times the book value and I think the dividend also not so attractive (at least SH got better dividends for the valuation). Me thinks there are better options out there.

Yes, with ageing population comes increased healthcare cost but whether a company can take advantage is another question. There is always a right sector and a right company within the sector at the right price. The stars must align woh.
I will never buy at the current price. It is ridiculous!
Even assuming they can capitalise on the China market, it will take time for fruits to bear.
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Old 30-10-2013, 01:43 PM   #22
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I will never buy at the current price. It is ridiculous!
Even assuming they can capitalise on the China market, it will take time for fruits to bear.
I agree. No offense, but many companies say go China, big potential, but backside got burn. I worked in China before, and I think it is not so easy. For medical, I see a lot of private hospitals there, even in Tier 2 cities. Parkway limited themselves mostly to Shanghai for now if I am not wrong. So I think competition pretty fierce.

edit:
If want medical exposure, I would go for Parkway REIT. Lower PTB, higher yield, got FCF and overall cheaper price to enter. (not a buy or sell call, not vested)

Last edited by koxinga; 30-10-2013 at 01:49 PM..
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Old 30-10-2013, 03:18 PM   #23
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1) Valuation of Plife is not comparable to RMG. The former is a reit while the latter is a growing company. Both have different business structures. By the way, Plife has a rich valuation too if you compare among all the reits. ie It has the lowest yield and highest PTB among the reits.

2) Acording to Shareinvestors, RMG has a rolling PE of 28.3. Compared to Medical & Biotechnology of 30.1 and FTSE ST Health Care Index of 25.1. So I dont think RMG is that "expensive" in terms of PE. In terms of PTB, then its a bit subjective to compare. The PTB is high compared to other stocks of the same sectors.

3) Dividends wise, RMG has traditionally given little throughout the years but they have grown at a CAGR of 12.5% pa in the past 5 years. So one shouldnt be looking at the dividends as source of returns.
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Old 30-10-2013, 04:35 PM   #24
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I guess we got different strategy and approach. The sectoral PE which you provided only serves to tell me that the entire Healthcare sector maybe overpriced in my definition. It sounds silly but I am not interested in any company with a PE of more than 15. By that definition, I am perfectly happy with slow CGAR and regular dividend payout rather than high CGAR and no dividends.

Ideally, I would like to have CGAR and dividends but that is a bit rare nowadays.
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Old 30-10-2013, 05:02 PM   #25
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Raffles Medical Group is trading at 28 times the earnings, and more than 4 times the book value and I think the dividend also not so attractive (at least SH got better dividends for the valuation). Me thinks there are better options out there.
That's it. P/B and P/E doesn't look good and dividend not attractive; many better options.
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Old 30-10-2013, 05:18 PM   #26
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I guess we got different strategy and approach. The sectoral PE which you provided only serves to tell me that the entire Healthcare sector maybe overpriced in my definition. It sounds silly but I am not interested in any company with a PE of more than 15. By that definition, I am perfectly happy with slow CGAR and regular dividend payout rather than high CGAR and no dividends.

Ideally, I would like to have CGAR and dividends but that is a bit rare nowadays.
PE is but a gauge. Don't get too fixated on it.

Side note: you're comparing PE and dividend yield across sectors. That's wrong. You should compare within the same sector to have a proper valuation.
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Old 02-11-2013, 04:17 PM   #27
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Price currently more than $3.20
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Old 04-11-2013, 12:51 PM   #28
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as a long term shareholder, i dont mind the direction in the short term. my position in RMG is not that large yet. im willing to accumulate if there is any price correction. i am happy if RMG goes up too.
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Old 04-11-2013, 07:25 PM   #29
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I guess we got different strategy and approach. The sectoral PE which you provided only serves to tell me that the entire Healthcare sector maybe overpriced in my definition. It sounds silly but I am not interested in any company with a PE of more than 15. By that definition, I am perfectly happy with slow CGAR and regular dividend payout rather than high CGAR and no dividends.

Ideally, I would like to have CGAR and dividends but that is a bit rare nowadays.
For a growth stock, PE is not a good gauge. Most growth stocks' PE is above 20, coupled by low dividend payout ratio. Plife REIT is suitable for those who wants constant dividends. I use both growth and dividends stock to prop up my portfolio. To me, I see RMG as a growth stock and I don't mind betting all my estate on it if there is a correction...

As for China, yes, there are a number of hospitals in China but importantly, the patients that RMG is trying to cater to is different. Besides, Singapore is well known in the medical fraternity. Considering that China would become richer by the day, would rich chinese risks their health and choose a lower grade hospital when they are ill or when they need surgeries?

A person once told me about the public hospital in Singapore competing with RMG and so he is bearish on it. I bet that he does not understand that RMG is catering to a different group of people. Our public hospitals are not a direct competitor to RMG.
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Old 04-11-2013, 10:58 PM   #30
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I use PE as one of the gauges and 15 as it is the median for S&P 500. (e.g there are earnings approach, asset based approach and cashflow approaches to valuation) I will also look at sectoral PE across the board if I find something interesting about their business case.

I prefer to err on the side of safety. Ideally, I hope to accumulate companies like Boustead that has a nice CGAR as well as a good dividend policy but other than outright winners, I would prefer to wait it out and hold some boring stocks like CM Pacific and NSL. But then again, if Boustead hits around $2.5, I would consider exiting especially if it runs up too fast without the numbers justifying the valuation (based on earning of 0.17)


If RMG corrects to an attractive level, I might consider entering. Been looking at healthcare for a while hence my comments to OP. I have just one REIT, maybe it is just me but I dun really like REITS in general; other than FEHT which I got at IPO, many years ago, I had Ascendas when it IPO and sold it after a year.
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