The Pain of Hospital Stocks

Normally, during the outbreak of covid-19, the hospital stocks should benefit from people coming in for medical treatment .. !!

But in an unusual condition like this…aside from being unprofitable…have to lose income as well. 

Because people assumes that the hospital is a risk-prone areas and the center of virus, thus some with mild symptom prefers to go to the pharmacy instead of going to the hospital.

Including people who plan to buy an annual health check-ups is likely to delay their project due to the fear over virus…

That would cause the outcome of this year probably not turn as expected…

Especially a specialty hospital like Bangkok Chain Hospital Public Company Limited (BCH) that should be obviously affected.

Well…even BCH is a hospitals with the most social security patients, but BCH has established many specialized clinic such as pediatric clinic, obstetric gynecology clinic, medicine clinic, dental clinic, etc.

Therefore, when people afraid to go to hospital, then it’s quite hard avoiding the effect. 

While Ladprao General Hospital Public Company Limited (LPH) seems to be far gone as  the last expansion of LPH in specialty clinics and still under harvesting period…

Because of the virus spreading, LPH isn’t able to fully recognize its revenue…that’s such a shame.

Another concern case is Ekachai Medical Care Public Company Limited (EKH) that has a fertility center as a money maker due to a quite high margin, but amid this situation, the clinic’s revenue should drop largely.

And it would significanlty impact to EKH’s earnings…

Other hospitals are probably affected from the declining of patients because everyone believes staying at home is safest. Together with the Emergency Decree making people less leaving from home if it isn’t an emergency cases, then no one go to the hospital. 

Since the beginning of the year, hospital share prices completely collapsed such as BCH’s price dropped by 32.53%, while LPH slashed by 36.36% and EKH’s stock value plummeted 42.09%.

Partly of the collapse was in line with the falling stock market, but other factor was from the expectation of revenue loss.

So, many people are selling their hospital stocks… to reduce the risk

Covid-19 is truly a villain of the year 2020, as even hospital shares as well get infected.

And if the situation of covid-19 has yet to solve, it will continue to drag those hospitals’ income.

Whoever has a hospital shares in portfolio…suggesting to come to terms with it… then no need to regret later.