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

Bangkok Chain Hospital / Equity Bottom-Up

Yesterday analyst meeting came out with a neutral tone. We expect 2Q20 earnings to be the bottom quarter, given full quarter impact from COVID-19 quarantine as government order and higher fix cost from new hospital opened in May 2020.
Key takeaway:
<ul>
<li>2Q20 will factor in all negative impact including full COVID-19 impact, low seasonality, incurring fixed cost from opening in May.</li>
<li>Cutting earnings forecast by 16% and 14% in 2020-21E.</li>
<li>We maintain our positive view toward its 2020-21E earnings outlook on the backs of two hospitals expansion, higher SSO revenue due to 7.25% rise in reimbursement rate and demand recovery for IVF Lab after pandemic.</li>
</ul>
We maintain our BUY rating with 7% cut in our target price to Bt16.2 based on 33xPE’21E, which is close to 10-years average of health care sector.

Yesterday analyst meeting came out with a neutral tone. We expect 2Q20 earnings to be the bottom quarter, given full quarter impact from COVID-19 quarantine as government order and higher fix cost from new hospital opened in May 2020.
Key takeaway:

2Q20 will factor in all negative impact including full COVID-19 impact, low seasonality, incurring fixed cost from opening in May.
Cutting earnings forecast by 16% and 14% in 2020-21E.
We maintain our positive view toward its 2020-21E earnings outlook on the backs of two hospitals expansion, higher SSO revenue due to 7.25% rise in reimbursement rate and demand recovery for IVF Lab after pandemic.

We maintain our BUY rating with 7% cut in our target price to Bt16.2 based on 33xPE’21E, which is close to 10-years average of health care sector.

BCH: 2Q20 Earnings Should Be the Bottom Quarter

We initiate coverage on NTV with a BUY rating, based on a target price of Bt64 and derived from 25.6xPE’18E, which represents its five-year average trading range and a discount of 30% on the Thai Health Care sector. The story:<ul><li>Commands great position amid aging society megatrend</li><li>Area population and rail expansion to boost long-term sales</li><li>Big gains to come from medical hub policy and spending</li><li>Potential growth derived from specialized medical centers</li></ul>Risks:<ul><li>Sufficient expertise and supply of medical personnel</li><li>Industry particular sensitive to legal issues</li></ul>Background: Nonthavej Hospital Public Company Limited, the first private hospital in Nonthaburi province, was established on 3 September 1981. It is a tertiary referral hospital* with accreditation by the Joint Commission International Accreditation (USA) (JCI), Hospital Accreditation (HA), Good Laboratory Practice (ISO15189), GMP/HACCP and Energy Management Standard (ISO 50001). The hospital has 208 beds for its inpatient departments (IPD) and 90 examination rooms in its outpatients department (OPD), which can serve up to 2,000 patients a day. Its has 20 specialty centers and six OPD clinics for medical care at which services have been extended to 24 hours a day.

We initiate coverage on NTV with a BUY rating, based on a target price of Bt64 and derived from 25.6xPE’18E, which represents its five-year average trading range and a discount of 30% on the Thai Health Care sector. The story:Commands great position amid aging society megatrendArea population and rail expansion to boost long-term salesBig gains to come from medical hub policy and spendingPotential growth derived from specialized medical centersRisks:Sufficient expertise and supply of medical personnelIndustry particular sensitive to legal issuesBackground: Nonthavej Hospital Public Company Limited, the first private hospital in Nonthaburi province, was established on 3 September 1981. It is a tertiary referral hospital* with accreditation by the Joint Commission International Accreditation (USA) (JCI), Hospital Accreditation (HA), Good Laboratory Practice (ISO15189), GMP/HACCP and Energy Management Standard (ISO 50001). The hospital has 208 beds for its inpatient departments (IPD) and 90 examination rooms in its outpatients department (OPD), which can serve up to 2,000 patients a day. Its has 20 specialty centers and six OPD clinics for medical care at which services have been extended to 24 hours a day.

NTV: Health Provider Leads Care in Northern Metro Bangkok

Thailand

Thonburi Healthcare Group Public Company Limited offers health care services. The Hospital provides medical treatment, diagnosis, and surgeries, as well as supply of medical equipment, residential care services, and development of software for hospital management. Thonburi Healthcare Group serves customers worldwide.

Thonburi Healthcare Group (THG TB)

BCH: 2Q20 Earnings Should Be the Bottom Quarter

Yesterday analyst meeting came out with a neutral tone. We expect 2Q20 earnings to be the bottom quarter, given full quarter impact from COVID-19...

Pi Securities PCL, Thailand

NTV: Health Provider Leads Care in Northern Metro Bangkok

We initiate coverage on NTV with a BUY rating, based on a target price of Bt64 and derived from 25.6xPE’18E, which represents its five-year average...

Pi Securities PCL, Thailand