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).