Earnings Report /
Thailand

Bumrungrad Hospital PCL: 1Q22 in line with our number, but beat the street; softer 2Q22 in view

  • Beat the consensus

  • BH posted a 1Q22 core profit of Bt725m

  • The YoY and QoQ profit growth was due to top-line expansion

Phoowadol Phoosodngern
Bualuang Securities
29 April 2022

The positive 1Q22 surprise for the street will trigger a stock price rally, we believe. BH is levered to the reopening theme, given its high exposure to inbound medical tourism; fly-in business could realistically rebuild pre-COVID era scale during 2H22. Furthermore, we believe the profit recovery could continue to surprise on the upside, driven by a rising proportion of fat-margin fly-in patients in the revenue mix and the discontinuing of discounts. Our BUY call stands to a YE22 DCF-derived target price of Bt190 (7.0% WACC and a 2% terminal growth rate).

Beat the consensus

BH posted a 1Q22 core profit of Bt725m, up by 640% YoY and 9% QoQ. The core result was in line with our estimate, but was 10% above the consensus projection (higher hospital revenue than the street had assumed, driven by fly-in patients).