Earnings Report /
Thailand

Bangkok Dusit Medical Services PCL: Beat us and the street; low season ahead

  • Profit beat our estimate and the consensus

  • BDMS reported core earnings of Bt3.4bn for 3Q22

  • 4Q22 core earnings look set to fall YoY and QoQ

Bualuang Securities
15 November 2022

The stock price is likely to rally on the positive 3Q22 surprise. We recommend accumulating BDMS in anticipation of strong YoY growth for 2023—a full recovery from COVID-19 effects and a leaner management structure. Our BUY call stands to a YE23 DCF-derived target price of Bt32 (WACC of 7.0% and a terminal growth rate of 2%).

Profit beat our estimate and the consensus

BDMS reported core earnings of Bt3.4bn for 3Q22, up by 44% YoY and 27% QoQ and its second-best quarter on record (its best was 1Q22). The number beat our estimate by 10% (due to higher healthcare income and a fatter GM than we had assumed) and was 21% ahead of the consensus.