Earnings Report /
Thailand

Bangkok Dusit Medical Services PCL: 2Q22 beat, but 1H22 results were peak; soft 2H22 ahead

  • Profit beat our estimate and the consensus

  • BDMS reported core earnings of Bt2.7bn for 2Q22

  • 3Q22 core earnings look set to fall YoY and QoQ

Bualuang Securities
15 August 2022

If the 2Q22 profit beat triggers a stock price rally, it would be a good time to lock in profits (the share price is up 26% YTD). The 2H22 numbers look set to decline HoH and BDMS’s valuation metrics are stretched—a 2022 core PER of 46.8x, above the 33.4x mean for our Healthcare coverage. We maintain a HOLD call with a new YE22 DCF-derived target price of Bt27 (WACC of 7.0% and a terminal growth rate of 2%).

Profit beat our estimate and the consensus

BDMS reported core earnings of Bt2.7bn for 2Q22, up 83% YoY but down 23% QoQ from the record high marked for 1Q22. The number beat our estimate by 12% (due to a lower SG&A/sales ratio than we had assumed) and was 6% ahead of the consensus.