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

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

We initiate coverage of RJH with a BUY rating and a 2020E target price of Bt32.00, derived from 27.4xPE’20E, which is the current average trading valuation of its Asia ex Japan Healthcare peers. We view RJH as one of the most attractive choices in the Healthcare sector. Meanwhile, share prices in the sector should recover from a recent valuation de-rating with the arrival of high season in the second half.The story:<ul>
<li>Cheap hospitals in an economically strong area</li>
<li>Solid expansion plan</li>
<li>Well positioned to benefit from sector issues</li>
<li>Expected growth of 15% CAGR in 2019-21E</li>
</ul>Risks:     Medical personnel shortage                Litigation related to medical services                Changes to social security policy

We initiate coverage of RJH with a BUY rating and a 2020E target price of Bt32.00, derived from 27.4xPE’20E, which is the current average trading valuation of its Asia ex Japan Healthcare peers. We view RJH as one of the most attractive choices in the Healthcare sector. Meanwhile, share prices in the sector should recover from a recent valuation de-rating with the arrival of high season in the second half.The story:
Cheap hospitals in an economically strong area
Solid expansion plan
Well positioned to benefit from sector issues
Expected growth of 15% CAGR in 2019-21E
Risks:     Medical personnel shortage                Litigation related to medical services                Changes to social security policy   

Vibhavadi Medical Center / Equity Bottom-Up

We initiate coverage of VIBHA with a BUY rating, based on a target price of Bt3.0 derived from 38xPE’19E, which is equal to the stock’s five-year average trading range and at a 10% premium to the Thai Healthcare sector. 
The story:
<ul class="">
<li>The strategy based on inorganic growth</li>
<li>Harvest period and reinvestment support a bright outlook</li>
<li>Supportive environment from an aging society</li>
<li>Currently the cheapest hospital chain in Thailand</li>
</ul>
Risks:
<ul>
<li>Supply of medical staff and access to professional expertise</li>
<li>Healthcare industry’s sensitivity to legal issues</li>
</ul>
Background: 
Established in 1986, Vibhavadi Hospital Public Company Limited (VIBHA), operates and holds stakes in hospitals in Central and Northern Thailand. Currently, the group’s hospitals have a total of 2,172 beds via an 83.58% holding in Chiang Mai Ram Hospital (CMR), a 40.75% stake in Vibharam Hospital and a 28.57% stake in Bangpo Hospital, as well as the original Vibhavadi Hospital.

We initiate coverage of VIBHA with a BUY rating, based on a target price of Bt3.0 derived from 38xPE’19E, which is equal to the stock’s five-year average trading range and at a 10% premium to the Thai Healthcare sector. 
The story:

The strategy based on inorganic growth
Harvest period and reinvestment support a bright outlook
Supportive environment from an aging society
Currently the cheapest hospital chain in Thailand

Risks:

Supply of medical staff and access to professional expertise
Healthcare industry’s sensitivity to legal issues

Background: 
Established in 1986, Vibhavadi Hospital Public Company Limited (VIBHA), operates and holds stakes in hospitals in Central and Northern Thailand. Currently, the group’s hospitals have a total of 2,172 beds via an 83.58% holding in Chiang Mai Ram Hospital (CMR), a 40.75% stake in Vibharam Hospital and a 28.57% stake in Bangpo Hospital, as well as the original Vibhavadi Hospital.

VIBHA: Large Hospital Chain at the Cheapest Price

Thailand

Rajthanee Hospital Public Company Limited provides general medical and surgical hospital services.

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Rajthanee Hospital (RJH TB)

RJH: Cheap with Growing Potential

We initiate coverage of RJH with a BUY rating and a 2020E target price of Bt32.00, derived from 27.4xPE’20E, which is the current average trading...

Pi Securities PCL, Thailand

VIBHA: Large Hospital Chain at the Cheapest Price

We initiate coverage of VIBHA with a BUY rating, based on a target price of Bt3.0 derived from 38xPE’19E, which is equal to the stock’s five-year...

Pi Securities PCL, Thailand

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