Earnings Report /
Thailand

Bangkok Dusit Medical Services PCL: Negative surprise for 2Q20

  • Missed our estimate and the consensus

  • BDMS reported a net profit of Bt458m for 2Q20

  • Excluding a Bt68m one-time loss from the adjusted share of profit in BH

Bualuang Securities
14 August 2020

The weak 2Q20 result will generate negative sentiment toward the stock in the short run. We suggest accumulating BDMS in the event of a price fall. A good entry price would be Bt20, implying a bargain 2021 PER of 32x. We prefer BDMS over mid to long run. Our BUY call stands to a YE21 DCF-derived target price of Bt26 (6.1% WACC).

Missed our estimate and the consensus

BDMS reported a net profit of Bt458m for 2Q20. Excluding a Bt68m one-time loss from the adjusted share of profit in BH (due to dilution), core earnings would be Bt526m, a dive of 72% YoY and 80% QoQ. The core result was missed our estimate by 38% (and missed the consensus by 18%), due to lower revenue and GM than assumed.