DBS Vickers Recomm. “BUY” on BCH with TP of ฿23, Forecasting Record Earnings in 2Q21

Bangkok Chain Hospital Public Company Limited (BCH) had a total revenue of 1.5 billion baht in 1Q21, with 66% of revenue from general patients and 34% from Social Security patients. There are currently 891,000 insurers registered with BCH, up from 888,000 in 1Q20.

In 2Q21, BCH is expected to maintain its remarkable financial performance, with patients for Covid-19 testing services totaling 500,000 (an average of 7,000 people each day in April-May), representing 28% of total revenue. Furthermore, because BCH runs its own Covid testing lab and Thailand is experiencing delays in vaccine distribution, the number of Covid testing patients is expected to remain high in 3Q21.

Meanwhile, another 27% of total revenue in 2Q21 will come from full occupancy of Covid’s bed and Hospitel services.

DBS Vickers Securities (DBSVS) forecasted a record net profit of 550-600 million baht for BCH in 2Q21, predominantly due to the Covid testing services. As a result, DBSVS suggested a “BUY” rating on BCH with a target price of 23.00 baht per share.