Equity Analysis /

Bangkok Chain Hospital PCL: Vaccine doses due to expire could cause huge bleeding

  • COVID-19 is now officially endemic

  • COVID-related business dived in 3Q22

  • Impairment of 600-900m for unsold Moderna vaccines

Bualuang Securities
4 October 2022

BCH is stuck with 1m unsold Moderna COVID-19 vaccine doses. We expect the firm to mark an impairment provision of 600-900m, making for a weak bottom-line. If the stock price were to fall to the 15.50-17.00 range, it would be good re-entry point, we believe.

COVID-19 is now officially endemic

On Sep 29, the Bangkok Communicable Disease Committee resolved to repeal the Bangkok Metropolitan Administration COVID-19 control measures, effective Oct 1. Recent strains the virus have had much lower mortality and hospitalization rates. On Sep 30, surveillance and prevention measures were canceled.