In today’s briefing:
- Raffles Medical (RFMD SP): Resilient Business Model; Border Reopening to Further Boost Growth
- Raffles Medical: Earnings to Remain Under Pressure in 2022 but Long-Term Prospects Remain Attractive
- Zydus Lifesciences (ZYDUSLIF IN): U.S. Business Is Cloudy; Innovative Portfolio Has A Long Way To Go
- Aristotle Capital Management Core Equity Q1 2022 Commentary
- Aristotle Capital Management Large Cap Growth Q1 2022 Commentary
- Aristotle Capital Management Small/Mid Cap Equity Q1 2022 Commentary
- Aristotle Capital Management Focus Growth Q1 2022 Commentary
- Aristotle Capital Management Small Cap Equity Q1 2022 Commentary
Raffles Medical (RFMD SP): Resilient Business Model; Border Reopening to Further Boost Growth
- Raffles Medical (RFMD SP) reported 27% y/y revenue growth to S$723.8 million and net profit increase of 30% y/y to S$83.7 million in 2021.
- Following full border reopening by Singapore beginning April, medical tourism is set to revive. As a leading hospital operator in Singapore, Raffles is well-positioned to grab the opportunity.
- Regular share buyback and recent stake increase by a major investor further enhance conviction on the company’s growth potential.
Raffles Medical: Earnings to Remain Under Pressure in 2022 but Long-Term Prospects Remain Attractive
- Raffles Medical (RFMD SP) is a private medical provider in Singapore. The company owns and operates a network of medical clinics and hospitals.
- The company’s earnings saw a boost in 2021 driven by demand for Covid-19 related services such as PCR tests, vaccine administration and operation of Cov-19 treatment facilities.
- With Singapore reopening borders post Covid, we expect foreign patient volume to see a recovery, however, lower revenue from Covid related services would negatively impact earnings in 2022.
Zydus Lifesciences (ZYDUSLIF IN): U.S. Business Is Cloudy; Innovative Portfolio Has A Long Way To Go
- Zydus Lifesciences Ltd (ZYDUSLIF IN) earns more than 40% revenue from the U.S. This business is under continued pricing pressure, which is squeezing the gross profit margin of the company.
- The company has received approval for COVID-19 vaccine in India, which seems to have limited visibility and revenue potential, amid competition and uncertain COVID-19 outlook.
- Zydus has launched one new drug and received approval for another in India. However, its innovation portfolio has to go a long way to become a significant growth contributor.
Aristotle Capital Management Core Equity Q1 2022 Commentary
- For the first quarter of 2022, Aristotle Atlantic’s Core Equity Composite posted a total return of -6.79% gross of fees.
- The outlook for the U.S.
- large cap equity market for the balance of 2022 will be impacted by the pace and size of tightening by the Federal Reserve.
Aristotle Capital Management Large Cap Growth Q1 2022 Commentary
- For the first quarter of 2022, Aristotle Atlantic’s Large Cap Growth Composite posted a total return of -9.61% gross of fees.
- We have also entered a period of increased geopolitical risks that will add to market volatility, according to Aristotle Atlantic’s Large Cap growth Composite.
Aristotle Capital Management Small/Mid Cap Equity Q1 2022 Commentary
- For the first quarter of 2022, the Aristotle Small/Mid Cap Equity Composite generated a total return of -4.38% gross of fees.
- We remain optimistic about the prospects for small/mid cap equities going forward, according to the company.
- The Aristotle Small and Mid Cap Equity composite generated atotal return of 4.
Aristotle Capital Management Focus Growth Q1 2022 Commentary
- For the first quarter of 2022, Aristotle Atlantic’s Focus Growth Composite posted a total return of -9.30% gross of fees.
- In the near term, a recession seems unlikely with key economic indicators like the ISM Manufacturing Index pointing to an expanding economy.
- The ISM manufacturing Index points to an growing economy.
Aristotle Capital Management Small Cap Equity Q1 2022 Commentary
- For Q1 2022, the Aristotle Small Cap Equity Composite generated a total return of -5.77% gross of fees.
- While near-term price movements and volatility continue to be driven by macroeconomic and geopolitical issues in the short term, we believe business fundamentals will ultimately determine equity values in the long run.
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