The Healthcare sector has typically outperformed during periods of high inflation. We prefer BDMS and BH, as the downside risks to their respective core profit profiles are modest. Moreover, arrivals from the Middle East (the key fly-in market) are rising. On Jul 1 we will host a Thai Corporate Day. Executives from BDMS and BH will speak at our event. BH is our top pick in Healthcare space.
2H22 Healthcare strategy—prefer big-caps
Within the sector, we lean toward big-caps, as they are more defensive in nature, so the downside risk to their earnings profiles is modest. During this period of high inflation, we think Healthcare's defensive properties will outweigh policy concerns, driving relative performance.