Raffles Medical has more room for growth

SINGAPORE (Oct 17): After posting 5% earnings growth in 2QFY16, RHB Research Cai is still maintaining its “buy” rating on the stock with a target price of $1.70 as it believes the group has more room to grow.

The potential growth is expected to come from the Raffles Holland Village commercial building which was opened in June, and will meaningfully contribute to group earnings in 2HFY16, according to RHB analyst Juliana Cai.

Analyst Juliana Cai said in a note on Monday that about 60% of the space at the building has already been committed at rental rates of between $12.50 and $15 psf. While the remaining space has seen “strong tenant interest”, Cai noted that the management remains in negotiations to seek the best tenant mix for the property.

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