Earnings Report /
Thailand

Bangkok Dusit Medical Services PCL: 1Q21 result was as expected; profit recovery forecast for 2Q21

  • Profit was as we had expected (but missed the consensus)

  • BDMS reported a core profit of Bt1.34bn for 1Q21

  • After five straight quarters of decline

Bualuang Securities
11 May 2021

We recommend accumulating BDMS, as we expect its earnings to recover strongly YoY and QoQ in each successive quarter, 2Q-4Q21. The stock deserves a valuation premium for this early phase of its recovery story. Our BUY rating stands to a YE21 DCF-derived target price of Bt26 (6.8% WACC and 2.0% terminal growth).

Profit was as we had expected (but missed the consensus)

BDMS reported a core profit of Bt1.34bn for 1Q21, down 48% YoY but up 9% QoQ. The core result was in line with our estimate, but was 7% shy of the consensus (as revenue was below the street assumption).