Author: kktan
SingTel – DMG
Optus Goes Vivid
THE BUZZ
Singtel announced yesterday that its wholly- owned subsidiary, Optus Mobile Pty Ltd has signed an agreement to acquire all the issued shares in Vividwireless Group (VW) Ltd from Network Investments Holdings Pty. Ltd for a cash consideration of AUD230m. Vividwireless holds spectrum licenses in the 2.3GHz band and operates two wireless broadband businesses under the brandnames of ‘vividwireless’ and ‘unwired’. The completion of the transaction is subject to various conditions precedent including the reissue of the 2.3GHz spectrum licenses and approvals of the Australian Competition and Consumer Commission (ACCC) and Foreign Investment Review Board.
OUR TAKE
Zeroing in on the spectrum. We view the acquisition positively for Optus given the access to 98MHz under the 2.3Ghz band, a prized asset that will complement the 1800MHz band being used for its upcoming 4G (LTE) mobile rollout. Optus stands to gain immediately from an existing fixed wireless brand in the market and a ready base of customers to migrate, allowing for the up-selling and cross selling of bundled mobile and broadband packages. This should result in longer term ARPU accretion and stickiness. We believe Optus will be add value to VW than it would be possible under Seven Network as it is already supplying backhaul infrastructure to VW. The acquisition is well timed ahead of the move into next generation networks (NGN) where competition in the market is expected to intensify. There is strong potential for mobile and wireless broadband in Australia given the estimated broadband penetration of 49% in the country. Also, the vast terrain makes wireless broadband more a more cost effective solution to reach out to certain sections of the market which are not covered by fixed access.
RafflesMed – BT
RMG profit jumps 11.3% to $50.4m
A HIGHER patient load and wider range of medical specialities helped private healthcare provider Raffles Medical Group (RMG) post an 11.3 per cent rise in net profit to $50.4 million for the financial year ended Dec 31, 2011.
Revenue rose 14.1 per cent to $272.8 million, spurred by growth in both hospital services and healthcare services. Profit from operating activities came to $59.5 million, up 12.3 per cent from just under $53 million previously.
Earnings per share rose to 9.5 cents from 8.65 cents a year earlier.
RMG directors have recommended a final dividend of three cents per share, which would take the total payout for FY11 to four cents per share. An interim dividend of one cent was paid in September last year.
In 2011, foreign patients made up about a third of Raffles Hospital’s patient load, an increase of 5-6 per cent in volume, executive chairman Loo Choon Yong said. Revenue from foreign patients was up 14 per cent year on year.
‘With additional beds of new public and private hospitals coming onstream over the next few years, the healthcare landscape will continue to remain competitive,’ the group said.
‘While adding the Specialist Medical Centre in Orchard Road and expanding Raffles Hospital, the group continues to be vigilant and responsive to new opportunities that may appear.’
Upcoming hospitals such as Parkway Pantai’s 333-bed hospital at Novena – slated to open later this year – could intensify competition, Dr Loo acknowledged, though hospitals located closer to Novena may face stiffer competition.
In an update on its expansion plans, clinical operations at its Specialist Medical Centre on Orchard Road are likely to begin in the first half of 2013.
Planning and prepatory work to boost Raffles Hospital by some 102,400 square feet is underway and on track.
As at Dec 31, 2011, the group had a cash position of $50 million, which will help it to fund growth opportunities, it said.
Shares in RMG shot up nine cents yesterday to close at $2.44.
RafflesMed – BT
RMG profit jumps 11.3% to $50.4m
A HIGHER patient load and wider range of medical specialities helped private healthcare provider Raffles Medical Group (RMG) post an 11.3 per cent rise in net profit to $50.4 million for the financial year ended Dec 31, 2011.
Revenue rose 14.1 per cent to $272.8 million, spurred by growth in both hospital services and healthcare services. Profit from operating activities came to $59.5 million, up 12.3 per cent from just under $53 million previously.
Earnings per share rose to 9.5 cents from 8.65 cents a year earlier.
RMG directors have recommended a final dividend of three cents per share, which would take the total payout for FY11 to four cents per share. An interim dividend of one cent was paid in September last year.
In 2011, foreign patients made up about a third of Raffles Hospital’s patient load, an increase of 5-6 per cent in volume, executive chairman Loo Choon Yong said. Revenue from foreign patients was up 14 per cent year on year.
‘With additional beds of new public and private hospitals coming onstream over the next few years, the healthcare landscape will continue to remain competitive,’ the group said.
‘While adding the Specialist Medical Centre in Orchard Road and expanding Raffles Hospital, the group continues to be vigilant and responsive to new opportunities that may appear.’
Upcoming hospitals such as Parkway Pantai’s 333-bed hospital at Novena – slated to open later this year – could intensify competition, Dr Loo acknowledged, though hospitals located closer to Novena may face stiffer competition.
In an update on its expansion plans, clinical operations at its Specialist Medical Centre on Orchard Road are likely to begin in the first half of 2013.
Planning and prepatory work to boost Raffles Hospital by some 102,400 square feet is underway and on track.
As at Dec 31, 2011, the group had a cash position of $50 million, which will help it to fund growth opportunities, it said.
Shares in RMG shot up nine cents yesterday to close at $2.44.
RafflesMed – CIMB
Confidence not lacking
FY11 results were a non-event. Management’s confidence was evident in its strong dividend commitment amid expansion. Property decanting is in play.
FY11 core profit meets consensus and our expectations (99%). We lower FY12-13 by 2% to reflect a maturing landscape, though our target got a lift from higher peer valuations (20x CY13 P/E, previously 22.5x CY12). FY14. EPS has been introduced. Maintain Outperform.
Strong dividend signal
4Q11 core EPS makes up 33% of FY11, a strong quarter. FY11 growth was powered by all divisions (Healthcare Services +10.9% yoy; Hospital +14.6% yoy). Hospital growth was spurred by volume (+5%), prices and the number of intensity cases (+9%). A final dividend of 3cts has been declared. Adding in its interim dividend of 1ct, FY11 DPS will be 4cts (FY10 3.5cts). We read this as a strong vote of management’s confidence in the health of its businesses and cash flows, despite capex commitments.
Properties at play
Planning and preparatory work for its Raffles Hospital (RH) expansion and Specialist Medical Centre is underway. In Jan 12, the group had decanted 15k sf of space (admin/backroom) in RH for conversion into healthcare dollar-churning businesses, contributing from 2Q12 onwards. RFMD also brought 5k sf of space in Samsung Hub in the CBD for use as a medical centre. Rental revenue from its two Orchard and CBD properties amounted to S$10.5m in FY12 (S$7.9m in FY11).
New government scheme
We expect RFMD to benefit from recent government initiatives to expand the Community Health Assist Scheme. Catalysts are expected from the addition of clinics/medical specialties, patient growth and intensity cases. We believe management has every reason to look at rate and fee hikes, now that RH’s charges are below market rates.
RafflesMed – CIMB
Confidence not lacking
FY11 results were a non-event. Management’s confidence was evident in its strong dividend commitment amid expansion. Property decanting is in play.
FY11 core profit meets consensus and our expectations (99%). We lower FY12-13 by 2% to reflect a maturing landscape, though our target got a lift from higher peer valuations (20x CY13 P/E, previously 22.5x CY12). FY14. EPS has been introduced. Maintain Outperform.
Strong dividend signal
4Q11 core EPS makes up 33% of FY11, a strong quarter. FY11 growth was powered by all divisions (Healthcare Services +10.9% yoy; Hospital +14.6% yoy). Hospital growth was spurred by volume (+5%), prices and the number of intensity cases (+9%). A final dividend of 3cts has been declared. Adding in its interim dividend of 1ct, FY11 DPS will be 4cts (FY10 3.5cts). We read this as a strong vote of management’s confidence in the health of its businesses and cash flows, despite capex commitments.
Properties at play
Planning and preparatory work for its Raffles Hospital (RH) expansion and Specialist Medical Centre is underway. In Jan 12, the group had decanted 15k sf of space (admin/backroom) in RH for conversion into healthcare dollar-churning businesses, contributing from 2Q12 onwards. RFMD also brought 5k sf of space in Samsung Hub in the CBD for use as a medical centre. Rental revenue from its two Orchard and CBD properties amounted to S$10.5m in FY12 (S$7.9m in FY11).
New government scheme
We expect RFMD to benefit from recent government initiatives to expand the Community Health Assist Scheme. Catalysts are expected from the addition of clinics/medical specialties, patient growth and intensity cases. We believe management has every reason to look at rate and fee hikes, now that RH’s charges are below market rates.