BCH Soars 3%, Analyst Sees Upside from Covid-19 Vaccine Import, Recomm. “BUY” at ฿20.20

The share price of Bangkok Chain Hospital Public Company Limited (BCH) rose ฿0.40/share or 2.76% to ฿14.90/share with a trading value of 177 million baht in response to the announcement that its subsidiary company has been licensed for importing Covid-19 vaccine and the plan of opening the medical cannabis clinics.

 

KTBST Securities maintained a “BUY” rating on BCH and a target price of ฿20.20/share based on DCF, assuming WACC of 7.1% and terminal growth of 2.5%, which is equivalent to 2021E PER of 37x. KTBST was increasingly positive about BCH’s earnings outlook following the company’s guidance at an analysts meeting on Friday, March 12.           

 

KTBST maintained its 2021E net profit forecast at 1.36 billion baht, which indicates a rise of +11% YoY, as total revenue is estimated to grow +13% with revenue from two new hospitals of 370 million baht, COVID-19 tests of 480 million baht (160k tests) and higher SSS patients (+5% YoY), seeing a 3% upside to our net profit forecast if the number of COVID-19 tests will be the same level as 2020 and the number of SSS patients will grow +8% YoY.

 

BCH’s share price underperformed the SET Index by 25% in six months and currently trades at an undemanding 2021E PER of 27x, which implies -2 SD below its 5-yr average and is below its peers average level of 34x.