CIMB keeps Raffles Medical Group (R01.SG) at Outperform, says 3Q10 net profit of $10.7 million (+12.9% on-year) met consensus, house expectations; 3Q10, 9M10 EPS form 25.3%, 72.2% of FY10 estimates, respectively. 

Notes, record revenue, +9.8% on-year at $60.9 million, growth led by all divisions (Healthcare Services +4.0% on-year; Hospital +15.0% on-year). 

 

Raises target price to $2.64 vs $2.07 on rollover to 23X CY12 P/E vs 20X CY11 P/E, reflecting mid-cycle valuations. Notes, defensive business delivers consistent earnings; expects catalysts from addition of clinics, expansion of medical specialties, higher foreign-patient growth, higher intensity cases within hospital segment.

 

Shares +0.9% at $2.21.