In today’s briefing:
- Grab (GRAB US) – Moving Towards Steady State
- Raffles Medical: Consensus Too Conservative and Warrants an Upgrade
- Raffles Medical (RFMD SP): 2022 Result Tops Expectation; Medical Tourism Resumption to Drive Growth
- Carsharing Startup GetGo Bags US$15M to Bring 10K Greener Vehicles into SG by 2030
- G.K.Goh’s Voluntary MBO
- [Grab Holdings (GRAB US) Target Price Change]: Positive on Profit Growth, Cut TP for Slower GMV
Grab (GRAB US) – Moving Towards Steady State
- Grab Holdings (GRAB US) 4Q2022 numbers late last week made encouraging reading with revenues exceeding expectations significantly despite slow GMV growth in the quarter, as it maintained regional category leadership.
- The company saw continued improvement in segment-adjusted EBITDA margins in 4Q2022 versus 3Q2022 for both mobility and deliveries, with the latter making significant progress towards steady-state margins.
- Grab‘s relatively high regional cost remains a drag but should stabilise here and outside this, it looks to be firmly on track to accelerate profitably.
Raffles Medical: Consensus Too Conservative and Warrants an Upgrade
- Raffles Medical reported 2H2022 and full-year 2022 results today. Full-year revenue increased 5.9% YoY to SG$766.5m (vs consensus $774.7m) and OP increased 61.4% YoY to $195.8m (vs consensus $170m).
- Despite Covid-19 related revenues tapering off and China under lockdown during 2H2022, Raffles’ earnings saw a boost from Singapore reopening borders and recovery in foreign patient volume.
- Consensus forecasts are too conservative and does not reflect the recovery in demand for Raffles’ healthcare services in Singapore and China (post reversing of zero-Covid policy).
Raffles Medical (RFMD SP): 2022 Result Tops Expectation; Medical Tourism Resumption to Drive Growth
- Raffles Medical (RFMD SP) reported strong 2022 results, with 6% growth in revenue and 71% increase in net profit. Growth was driven by healthcare services, which contributed 58% of revenue.
- With the reopening of borders and easing of COVID-19 related protocols in H2 2022, RMG saw a return of foreign patients seeking medical treatment in Singapore.
- In view of the company’s strong performance, the Board recommended a dividend of 3.8 cents/share for 2022, representing an increase of 36% as compared to the previous year.
Carsharing Startup GetGo Bags US$15M to Bring 10K Greener Vehicles into SG by 2030
- Singapore-based carsharing platform GetGo Technologies has secured an SGD20 million (US$15 million) investment from Treïs, a family-backed investment group.
- This will enable GetGo to accelerate the growth of its electric fleet with a target of 10,000 greener vehicles by 2030 and to strengthen its technology and operational platform.
- GetGo cars are typically used to take children and the elderly to activities, to go out with family and friends, or to transport bulky items.
G.K.Goh’s Voluntary MBO
- Verveine Pte. Ltd., a vehicle controlled by Goh Geok Khim (executive chairman) and Goh Yew Lin (MD), has made a voluntary offer for GK Goh Holdings (GKG SP).
- The Offer price of $1.26/share, which is final, is a 38.5% premium to last close. It is conditional on the Gohs holding 90%, which may be reduced to 50%.
- GKG Investment, with 62.89%, has given an irrevocable to tender.
[Grab Holdings (GRAB US) Target Price Change]: Positive on Profit Growth, Cut TP for Slower GMV
- ● Grab reported C4Q22 top line 24% higher than our est. and cons., mainly thanks to higher-than-expected net revenue from Deliveries segment. Grab raised its FY23 revenue forecast by ~5%.
- Deliveries GMV in C4Q22 missed guidance midpoint by (4%) and slowing GMV growth raises market’s concern. We, however, are positive on Grab’s strategy of improving profitability especially amid macro challenges.
- We cut our forecast on FY23 Deliveries GMV by (4%) and raise FY23 total revenue est. by 8%. Maintain BUY and cut TP to US$3.5.
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