Earnings Report /
Thailand

Bangkok Chain Hospital PCL: 2Q21 result beat all estimates; a new record expected for 3Q21

  • Beat the street by a country mile—a new record!

  • BCH reported a net profit of Bt1.15bn for 2Q21

  • We have upgraded our 2021 core profit forecast by 66%

Bualuang Securities
17 August 2021

The stock should rally in the short run, due to the positive 2Q21 surprise and strong 3Q21 outlook. We suggest selling into strength, given that the market has mostly priced in anticipation of a record 2021 profit (the stock price is up 70% YTD), while the 2022 profile is weak. BCH’s 2022 PER is 39x, 1SD above its long-term mean of 37x. We have downgraded our call from TRADING BUY to HOLD. Our YE22 DCF-derived target price is Bt26 (7.1% WACC and 2.0% terminal growth).

Beat the street by a country mile—a new record!

BCH reported a net profit of Bt1.15bn for 2Q21, up by 311% YoY and 254% QoQ and a new record. The result was 77% above our estimate (6% higher sales and a 13.8% fatter GM than we had assumed) and 66% ahead of the consensus. The firm announced a DPS of Bt0.20 for 1H21, a 0.8% simple yield (XD Aug 31, payment Sep 15).