iFAST & RAFFLES HAVE SHORT TERM PAIN BUT FOR LONG TERM GAIN

Today iFAST Corporation Ltd (SGX: AIY) and Raffles Medical Group Ltd (SGX: BSL) these 2 stocks have seen fallen hard from their peaks, but these two companies could still be great investments in the upcoming years.  let's see-  Share Investment

Company 1: iFAST

The chairman and chief executive of iFAST are Lim Chung Chun. It is an Internet-based investment products distribution platform that provides a comprehensive range of investment products and services to both corporate clients and retail investors. 

In May 2015 iFAST's shares are exchanging hands at S$1.06 apiece, which seen 32% down from a peak of S$ 1.565.

iFAST’s China operations posted a loss in 2017, just like in 2016. However, the company’s business in China is still in its early days as it was launched only in 2016. It will take time for iFAST’s operations in the country to stabilize.  Stock Market News Today

Lim Chung Chun said the following in the company’s 2017 annual report:

China is expected to be the biggest wealth management market in Asia, and it is a market that we should not ignore. Some shareholders have been concerned about the operating losses that we are currently incurring for China. We see this initial phase as an important investment for the long run. iFAST expects losses from China in 2018, and for the losses to be comparable to that in 2017. In the coming years, iFAST thinks that China can be an important contributor to its overall business.  Penny Stock Singapore

Company 2: Raffles Medical

Raffles Medical,  Established in 1976 is one of the largest private healthcare groups in Singapore. It also operates with 12 cities across Singapore, China, Japan, Vietnam, and Cambodia.

In recent time the company’s stock has not been doing well. One of the main reasons for this poor performance is that Raffles Medical’s business growth has slowed down tremendously. From the time high of S$1.675 seen in May 2016, Raffles Medical’s shares are changing hands at S$1.02 each now – that’s a fall of nearly 40%.

From 2014 to 2017, the company’s earnings per share came in at around 4.0 Singapore cents in each year. The market may also be worried about the start-up losses that the company is going to suffer when it opens its new hospitals in China.  Stock Reccomendation

However, it is the China hospitals that I feel will fuel growth for Raffles Medical over the long run. The private healthcare services provider is developing a 400-bed international general hospital in Shanghai, and a 700-bed international tertiary general hospital in Chongqing. The hospitals are scheduled to open in the second half of 2019, and the fourth quarter of 2018, respectively. Yes, start-up losses will be incurred. But if investors have a long-term mindset, the losses are necessary to position the company for future growth. In other words, this is some short-term pain for long-term gains.   Singapore Stocks To Buy

To give context for the potential that Raffles Medical has in Shanghai and Chongqing, Singapore’s population was just 5.5 million in 2015 whereas the two Chinese cities had populations of 30.2 million and 24.2 million, respectively. The sheer size of the market in China should ensure that Raffles Medical does not stay anemic for long.