Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rajthanee-hospital" target="_blank" data-smartkarma-citation="entities:23729:1" rel="noopener">Rajthanee Hospital (RJH TB)</a> reported triple-digit revenue and net profit growth in Q3, with gross margin reaching all-time high to 57.4%, due to Covid-19-related tailwind.</li>
<li>With the steadily declining new Covid-19 cases in Thailand, Rajthanee’s Q4 revenue is expected to decline sequentially. However, non-Covid business should continue to recover with the resumption of elective procedures.</li>
<li>Despite the shares trading at a reasonable P/E of 17x, I see limited upside due to its small and geographically concentrated operations, with substantial revenue exposure to social security schemes.</li>
</ul>



Rajthanee Hospital (RJH TB) reported triple-digit revenue and net profit growth in Q3, with gross margin reaching all-time high to 57.4%, due to Covid-19-related tailwind.
With the steadily declining new Covid-19 cases in Thailand, Rajthanee’s Q4 revenue is expected to decline sequentially. However, non-Covid business should continue to recover with the resumption of elective procedures.
Despite the shares trading at a reasonable P/E of 17x, I see limited upside due to its small and geographically concentrated operations, with substantial revenue exposure to social security schemes.


Rajthanee Hospital (RJH TB): Q4 Revenue Growth to Decelerate Sequentially as Covid Tailwind Fades

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

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Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Bangkok Chain Hospital / Equity Bottom-Up

<p><strong>Positive tone from yesterday analyst meeting thanks to strong earnings momentum in 2H21 from a solid COVID-19 related revenue.</strong></p><div>• We expect 3Q21 earnings to hit the record high while it will be the peak quarter of the year. We expect 2H21 earnings to grow YoY and HoH supported by COVID-19 screening, COVID-19 treatment services in hospitals, COVID-19 quarantine in hospitels, alternative quarantine and revenue from procuring alternative vaccines injections roughly 0.4 million doses.</div><div></div><div>• We expect 3Q21 gross profit margin to stand at high level supported higher utilization rate and an increase in reimbursement rate for ICU room, negative pressure room by 25% since 29 June 2021</div><div>
<br>
</div><p><strong>We expect 3Q21 should be peak earnings quarter in 2021-23. BCH share price surged 68%YTD as we believe it has already priced in near-term positive factors. So, we reiterate our HOLD rating with a target price of Bt25 based on 33xPE’22E, which is close to 10-years average of health care sector.</strong></p>

Positive tone from yesterday analyst meeting thanks to strong earnings momentum in 2H21 from a solid COVID-19 related revenue.• We expect 3Q21 earnings to hit the record high while it will be the peak quarter of the year. We expect 2H21 earnings to grow YoY and HoH supported by COVID-19 screening, COVID-19 treatment services in hospitals, COVID-19 quarantine in hospitels, alternative quarantine and revenue from procuring alternative vaccines injections roughly 0.4 million doses.• We expect 3Q21 gross profit margin to stand at high level supported higher utilization rate and an increase in reimbursement rate for ICU room, negative pressure room by 25% since 29 June 2021
 
We expect 3Q21 should be peak earnings quarter in 2021-23. BCH share price surged 68%YTD as we believe it has already priced in near-term positive factors. So, we reiterate our HOLD rating with a target price of Bt25 based on 33xPE’22E, which is close to 10-years average of health care sector.

BCH: Expect 3Q21 Should Be Peak Earnings Quarter of the Year

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<p>We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Thai market to try to find interesting ideas base upon Fundamentals or Valuation or Momentum or Risk or some combination thereof.</p>

We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Thai market to try to find interesting ideas base upon Fundamentals or Valuation or Momentum or Risk or some combination thereof.

The Stocks to Own in Thailand – Vol. 34

<p><strong>We maintain HOLD rating and raise target price by 33% to Bt28 (Previous TP: Bt21.0) based on 33xPE’1H22E, which is close to 10-years average of health care sector.</strong></p><div>• We expect BCH to report 2Q21 net profit of Bt740m (+166%YoY, +129%QoQ), hitting a record high. We estimated 1H21 accounted for 40% of 2021E (+98%YoY). A solid earnings supported by COVID-19 related revenue such as COVID-19 testing at roughly 588,472 tests up from 128,000 tests in 1Q21 (+360%QoQ), COVID-19 treatment services in hospitals and hospitels.</div><div></div><div>• We expect 3Q21 earnings to hit the record high while it will be the peak quarter of the year. We expect 2H21 earnings to grow YoY and HoH supported by COVID-19 testing, COVID-19 treatment services and revenue from procuring alternative vaccines injections roughly 1 million doses.</div><div></div><div>• We revise up 2021-22E earnings by 4%-64% to factor in positive impact from the COVID-19 pandemic. We forecast COVID-19 related revenue portion increase to 64% of total revenue in 2021 from 10% of total revenue in 2020.</div>

We maintain HOLD rating and raise target price by 33% to Bt28 (Previous TP: Bt21.0) based on 33xPE’1H22E, which is close to 10-years average of health care sector.• We expect BCH to report 2Q21 net profit of Bt740m (+166%YoY, +129%QoQ), hitting a record high. We estimated 1H21 accounted for 40% of 2021E (+98%YoY). A solid earnings supported by COVID-19 related revenue such as COVID-19 testing at roughly 588,472 tests up from 128,000 tests in 1Q21 (+360%QoQ), COVID-19 treatment services in hospitals and hospitels.• We expect 3Q21 earnings to hit the record high while it will be the peak quarter of the year. We expect 2H21 earnings to grow YoY and HoH supported by COVID-19 testing, COVID-19 treatment services and revenue from procuring alternative vaccines injections roughly 1 million doses.• We revise up 2021-22E earnings by 4%-64% to factor in positive impact from the COVID-19 pandemic. We forecast COVID-19 related revenue portion increase to 64% of total revenue in 2021 from 10% of total revenue in 2020.

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<p>As the Thai government announced that they will open the borders in 120 days, a stock that will rally hard is obviously <a href="https://www.smartkarma.com/entities/airports-of-thailand-pcl" target="_blank" data-smartkarma-citation="entities:239:1" rel="noopener">Airports of Thailand (AOT TB)</a>as it directly links with the number of foreign tourists coming to Thailand. </p>
<p>When the market fully digests the news that Thailand is fully opened for foreign tourists, <a href="https://www.smartkarma.com/entities/airports-of-thailand-pcl" target="_blank" data-smartkarma-citation="entities:239:1" rel="noopener">Airports of Thailand (AOT TB)</a> has underperformed the other tourism names that have benefited from the increasing vaccination in Thailand. </p>
<div class="content-highlight">
<p>For those who have been patient holding AOT, you shall be rewarded soon. </p>
<p>For investors who do not have AOT in the portfolio yet, this is the biggest catalyst so far thus please start building a position.</p>
<p>For investors who are short AOT, although one may think that the tourists may not come that soon, the stock will rally much earlier than the tourists coming back to Thailand as the pent-up demand is massive and vaccines are pretty much available around the world. </p>
</div>

As the Thai government announced that they will open the borders in 120 days, a stock that will rally hard is obviously Airports of Thailand (AOT TB)as it directly links with the number of foreign tourists coming to Thailand. 
When the market fully digests the news that Thailand is fully opened for foreign tourists, Airports of Thailand (AOT TB) has underperformed the other tourism names that have benefited from the increasing vaccination in Thailand. 

For those who have been patient holding AOT, you shall be rewarded soon. 
For investors who do not have AOT in the portfolio yet, this is the biggest catalyst so far thus please start building a position.
For investors who are short AOT, although one may think that the tourists may not come that soon, the stock will rally much earlier than the tourists coming back to Thailand as the pent-up demand is massive and vaccines are pretty much available around the world. 


Airport of Thailand (AOT): 120 Days to Reopening

Thailand

Bangkok Chain Hospital Public Company Limited operates a chain of hospitals in Thailand serving both the cash and managed care markets.

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Bangkok Chain Hospital (BCH TB)

Rajthanee Hospital (RJH TB): Q4 Revenue Growth to Decelerate Sequentially as Covid Tailwind Fades

Q4 revenue is expected to slow down q/q as new Covid-19 cases in Thailand is declining steadily. However, non-covid business is recovering. The...

Tina Banerjee

BCH: Expect 3Q21 Should Be Peak Earnings Quarter of the Year

Positive tone from yesterday analyst meeting thanks to strong earnings momentum in 2H21 from a solid COVID-19 related revenue.

Pi Securities PCL, Thailand

The Stocks to Own in Thailand – Vol. 34

Our research team constantly reviews the Thai market to try to find interesting ideas base upon Fundamentals or Valuation or Momentum or Risk or...

A. Stotz Investment Research

BCH: Solid Earnings Outlook in 2H21

We maintain HOLD rating and raise target price by 33% to Bt28 (Previous TP: Bt21.0) based on 33xPE’1H22E, which is close to 10-years average of...

Pi Securities PCL, Thailand

Airport of Thailand (AOT): 120 Days to Reopening

As the Thai govt announced that they will open the borders in 120 days, the Airports of Thailand share will rally hard as it directly links with...

Henry Soediarko

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