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

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Thai Equity - Bottom-up - Equities

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Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

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

Equity Bottom-Up

<ul>
<li>Maintain HOLD rating with a TP of Bt33.50, based on 19.14xPE’22E,which is pegged to -1SD of 3-years trading mean.Despite drastic drop in 22E profit, its strategic location, combined with undemanding </li>
<li>Its 4Q21 net profit was at Bt283m (+96%YoY, -42%QoQ), given weak QoQ revenue growth, and margin contraction due to lowered Covid-19 related contribution.</li>
<li>RJH’s 2021 earnings was at Bt1.01bn, implying +145% YoY, mainly attributed to higher contribution from Covid-related services.</li>
</ul>


Maintain HOLD rating with a TP of Bt33.50, based on 19.14xPE’22E,which is pegged to -1SD of 3-years trading mean.Despite drastic drop in 22E profit, its strategic location, combined with undemanding 
Its 4Q21 net profit was at Bt283m (+96%YoY, -42%QoQ), given weak QoQ revenue growth, and margin contraction due to lowered Covid-19 related contribution.
RJH’s 2021 earnings was at Bt1.01bn, implying +145% YoY, mainly attributed to higher contribution from Covid-related services.


<ul>
<li>Yesterday’s analyst meeting came out with a neutral tone. We expect YoY growth in 4Q21 earnings, backed by robust margin upon recovery of cash patients segment, together with rising Covid-19 </li>
<li>3Q21 earnings was at Bt484m (+302%YoY, +252%QoQ), aided  by record high topline, and wider-than-expected margin from Covid services.</li>
<li>Expect 4Q21 earnings to decline QoQ, but grow YoY due to spike in IPD price, along with contribution from Covid treatment services.</li>
</ul>


Yesterday’s analyst meeting came out with a neutral tone. We expect YoY growth in 4Q21 earnings, backed by robust margin upon recovery of cash patients segment, together with rising Covid-19 
3Q21 earnings was at Bt484m (+302%YoY, +252%QoQ), aided  by record high topline, and wider-than-expected margin from Covid services.
Expect 4Q21 earnings to decline QoQ, but grow YoY due to spike in IPD price, along with contribution from Covid treatment services.


RJH: Building Back Better 22-23E Through Resilient Core Operation

<p><strong>We downgrade our recommendation to HOLD rating, from BUY, with new 2022E target price of Bt40.50, +14% from Bt35.50 previously, derived from 27.6xPE, which is +1SD of its 3-year trading average.</strong></p><div>• RJH 2Q21 net profit was Bt138m (+112%YoY, +29%QoQ).</div><div></div><div>• 1H21 earnings accounted for 47% of our full year forecast.</div><div></div><div>• Covid-19 diagnostic revenue and increased IPD utilization for Covid patients boosted its earning performance.</div><div></div><div>• The company announced interim dividend payment of Bt0.4/share, which is equivalent to 1% upcoming dividend yield. XD on 23-Aug-21.</div><div>
<br>
</div><div>• We revised up 2021-23E earning by 36%, 24% and 22%, respectively, to reflect uplifted Covid related services.</div><div>
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</div><p><strong>We think the Covid windfall should peak soon in term of both stock sentiment and hospital performance.</strong></p>

We downgrade our recommendation to HOLD rating, from BUY, with new 2022E target price of Bt40.50, +14% from Bt35.50 previously, derived from 27.6xPE, which is +1SD of its 3-year trading average.• RJH 2Q21 net profit was Bt138m (+112%YoY, +29%QoQ).• 1H21 earnings accounted for 47% of our full year forecast.• Covid-19 diagnostic revenue and increased IPD utilization for Covid patients boosted its earning performance.• The company announced interim dividend payment of Bt0.4/share, which is equivalent to 1% upcoming dividend yield. XD on 23-Aug-21.
 
• We revised up 2021-23E earning by 36%, 24% and 22%, respectively, to reflect uplifted Covid related services.
 
We think the Covid windfall should peak soon in term of both stock sentiment and hospital performance.

<p><strong>We maintain BUY rating with new 2022E target price of Bt35.50, from Bt29.00, derived from 30.0xPE, which is -1SD of SET Healthcare sector’s during 2017-2019, represented the pre-covid figures.</strong></p><div>• RJH 1Q21 net profit was Bt107m (+29%YoY, -26%QoQ). Excluding extra gain from Social security revenue adjustment at Bt25m, RJH recurring profit was Bt87m (+5%YoY, -16%QoQ).</div><div></div><div>• The earnings accounted for 24% of our full year forecast.</div><div></div><div>• Covid-19 diagnostic revenue of Bt46m (+12%QoQ) helped offsetting Covid-19 impact to patients’ traffic.</div><div></div><div>• We revised up 2021-22E earning by 24% and 8%, respectively.</div><div>
<br>
</div><p><strong>We like RJH for it is one of the cheapest hospital stock in the sector. Meanwhile, its performance during Covid situation is one of the most resilient.</strong></p>

We maintain BUY rating with new 2022E target price of Bt35.50, from Bt29.00, derived from 30.0xPE, which is -1SD of SET Healthcare sector’s during 2017-2019, represented the pre-covid figures.• RJH 1Q21 net profit was Bt107m (+29%YoY, -26%QoQ). Excluding extra gain from Social security revenue adjustment at Bt25m, RJH recurring profit was Bt87m (+5%YoY, -16%QoQ).• The earnings accounted for 24% of our full year forecast.• Covid-19 diagnostic revenue of Bt46m (+12%QoQ) helped offsetting Covid-19 impact to patients’ traffic.• We revised up 2021-22E earning by 24% and 8%, respectively.
 
We like RJH for it is one of the cheapest hospital stock in the sector. Meanwhile, its performance during Covid situation is one of the most resilient.

RJH: Resilient Performance Amidst Covid Situation

<p><strong>We maintain BUY rating with a new 2021E target price of Bt29.00, from Bt32.00, derived from 28.3xPE, which is -1SD of SET Healthcare sector’s 3-year trading average.</strong></p><div>•RJH reported 3Q20 recurring profit at Bt106m (+18%YoY, +63%QoQ). While the patient's traffic was still weak, the Covid-19 diagnostic service helped to boost its performance.</div><div>
<br>
</div><div>•We revised down our 2020-22 net profit forecasts by 7%, 20%, and 22%, respectively, mainly reflected patient traffic trend which should be affected by the more hygienic behavior in the population.</div><div>
<br>
</div><div>•RJH announced an interim dividend of Bt0.15/share, XD on 20-Nov-20.</div><div>
<br>
</div><p><strong>We like RJH for it is one of the cheapest hospital stock in the sector. Meanwhile, it has an expansion plan of two hospitals in the pipeline, which would top up its services capacity by more than 60% in the next two years.</strong></p>

We maintain BUY rating with a new 2021E target price of Bt29.00, from Bt32.00, derived from 28.3xPE, which is -1SD of SET Healthcare sector’s 3-year trading average.•RJH reported 3Q20 recurring profit at Bt106m (+18%YoY, +63%QoQ). While the patient's traffic was still weak, the Covid-19 diagnostic service helped to boost its performance.
 
•We revised down our 2020-22 net profit forecasts by 7%, 20%, and 22%, respectively, mainly reflected patient traffic trend which should be affected by the more hygienic behavior in the population.
 
•RJH announced an interim dividend of Bt0.15/share, XD on 20-Nov-20.
 
We like RJH for it is one of the cheapest hospital stock in the sector. Meanwhile, it has an expansion plan of two hospitals in the pipeline, which would top up its services capacity by more than 60% in the next two years.

Record High Revenue Thanks to Covid-19 Diagnostics

Thailand

Rajthanee Hospital Public Company Limited is a Thailand-based company primarily engaged in healthcare services, operating as a general hospital. The company runs two hospitals, Rajthanee Hospital and Rajthanee Rojana Hospital, both located in Phra Nakhon Si Ayutthaya Province. They offer comprehensive medical services, including various specialized centers like emergency trauma, pediatric, heart, and orthopedic centers, as well as medical clinics. The company was established in 1990 and commenced operations in 1992, with its headquarters in Phra Nakhon Si Ayutthaya, Thailand.

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Rajthanee Hospital (RJH TB)

RJH: 4Q21 Earnings Grew YoY but Drop QoQ

Maintain HOLD rating with a TP of Bt33.50, based on 19.14xPE’22E, which is pegged to -1SD of 3-years trading mean. Despite drastic drop in 22E...

Pi Securities PCL, Thailand

RJH: Building Back Better 22-23E Through Resilient Core Operation

Yesterday’s analyst meeting came out with a neutral tone. We expect YoY growth in 4Q21 earnings, backed by robust margin upon recovery of cash...

Pi Securities PCL, Thailand

RJH: Covid Windfall Largely Priced In

We downgrade our recommendation to HOLD rating, from BUY, with new 2022E target price of Bt40.50, +14% from Bt35.50 previously, derived from...

Pi Securities PCL, Thailand

RJH: Resilient Performance Amidst Covid Situation

We maintain BUY rating with new 2022E target price of Bt35.50, from Bt29.00, derived from 30.0xPE, which is -1SD of SET Healthcare sector’s during...

Pi Securities PCL, Thailand

Record High Revenue Thanks to Covid-19 Diagnostics

We like RJH for it is one of the cheapest hospital stock in the sector. Meanwhile, it has an expansion plan of two hospitals in the pipeline.

Pi Securities PCL, Thailand

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