Earnings Report /
Thailand

Bangkok Chain Hospital PCL: Miss! COVID-related income has already peaked

  • Profit below our estimate and consensus

  • BCH reported a net profit of Bt2.0bn for 1Q22

  • Healthcare revenue was Bt7.1bn

Phoowadol Phoosodngern
Bualuang Securities
17 May 2022

The stock price is likely to fall after BCH missed the consensus estimate. We suggest selling-on-fact—the COVID windfall has already peaked and earnings will fall this year and next. We have downgraded our call from BUY to HOLD and cut our YE22 DCF-derived target price from Bt26 to Bt22 (7.0% WACC and 2.0% terminal growth).

Profit below our estimate and consensus

BCH reported a net profit of Bt2.0bn for 1Q22, up 526% YoY but down 18% QoQ. The result was 18% below our estimate (a 9% slimmer GM than we had assumed) and 12% short of the consensus.