Earnings Report /
Thailand

Bumrungrad Hospital PCL: Profit in 3Q21 in line with our forecast, beat the street number

  • In line with our estimate but above the consensus forecast

  • BH posted a net profit of Bt296m for 3Q21

  • Strong earnings growth was due to healthcare GM recovery

Narumon Ekasamut
Narumon Ekasamut

Equity Research Analyst

Bualuang Securities
5 November 2021

Share price is expected strong given a positive surprise by consensus in 3Q21 result. Given a 26% quick share price rally over the past three months, a short-term risk of profit taking by short-term investors is possible. If that proves the case, we recommend investors Buy on Dip, good entry price of Bt144-145. BH is the best play of medical tourism demand recovery in Thailand (55% BH’s revenue). Premium valuations are deserved to reflect sector earnings growth winner in 2022. Our BUY rating stands at a YE22 DCF target price of Bt160 (7.0% WACC).

In line with our estimate but above the consensus forecast

BH posted a net profit of Bt296m for 3Q21, up 34% YoY and 37% QoQ.  Excluding a Bt1m FX loss, core profit was Bt298mm, up 38% YoY and 41% QoQ. Net profit was in line with our forecast but 14% ahead of the consensus preview due to a positive surprise in core margin.