Daily BriefsSingapore

Singapore: Thai Beverage, Raffles Medical and more

In today’s briefing:

  • Thai Bev: Holdco Discount Narrows as Thai Bev Prepares to Restart the Beer Unit IPO
  • 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
  • ThaiBev BeerCo Pre-IPO – Back for Another Round

Thai Bev: Holdco Discount Narrows as Thai Bev Prepares to Restart the Beer Unit IPO

By Oshadhi Kumarasiri

  • In a regulatory filing last Thursday, Thai Beverage (THBEV SP) said that it had restarted its Beer Unit IPO at a much lower valuation than before.
  • Based on the current NAV discount of 13%, we think this is already priced-in Thai Bev’s share price.
  • Nonetheless, a 13% NAV discount could be too light in our opinion and there could be downside potential to the NAV discount following the completion of the Beer Unit IPO.

Raffles Medical (RFMD SP): Resilient Business Model; Border Reopening to Further Boost Growth

By Tina Banerjee

  • 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

By Shifara Samsudeen, ACMA, CGMA

  • 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.

ThaiBev BeerCo Pre-IPO – Back for Another Round

By Sumeet Singh

  • On 5th May 2022, Thai Beverage announced that BeerCo will resume its Proposed Spin-off Listing. This time the company is aiming to raise less than US$1bn, as per media reports.
  • We have looked at various aspects of the deal earlier, as the company had tried to spin-off BeerCo in 2021 as well before finally calling it off in April 2021.
  • In this note, we talk about the recent updates for BeerCo.

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