IMH Soars Nearly 10% after Acquiring “Prochapat Hospital” to Strengthen Income Growth

The share price of Intermedical Care and Lab Hospital Public Company Limited (IMH) rose ฿0.28/share or 9.52% to trade at ฿3.22/share as of 11:07 local time in Thailand on Thursday with a trading value of 28.5 million baht.

 

The rise came after the announcement of an asset acquisition transaction in Suksawat Medical Company Limited (SSW or Prachapat Hospital) by purchasing shares in the total of 360,000 shares with a parvalue of THB100.00 per share, equivalent to 100% of the total shares of SSW from Intouch Pharma Company Limited in the total value not exceeding 161 million baht.

 

SSW engages in private hospital business, which currently operates Prachapat Hospital with 100 beds. The hospital provides medical services to various kinds of patients including general patients as well as patients from National Health Security Office’s scheme (NHSO), and Social Security Scheme, focusing on providing services to these patients in Ratburana and Thung Khru District, Bangkok, with the specialized medical personnel and standardized medical devices.

 

SSW had a total revenue of 204.99 million baht in 2019, increased from 202.46 million baht in 2018 and 182.49 million baht in 2017. Meanwhile, the company recorded a net profit of 9.50 million baht in 2019, 6.62 million baht in 2018 and 0.08 million baht in 2017.

 

The transaction would strengthen IMH’s ability to generate income growth and maintain profit in the long run, which will positively affect IMH’s performance as well as reducing the income volatility that is resulted from the seasonal effect as most clients usually have the same annual health check-up period during 3Q-4Q every year.

Moreover, it helps expanding the business scope for IMH’s medical services sector, which formerly focuses only on providing health check-up services, to operating general hospital business, which SSE has expertise in, as it provides medical services to various kinds of patients including general patients as well as patients from National Health Security Office’s scheme (NHSO), and Social Security Scheme. Furthermore, it creates an opportunity to expand the customer vase and improves IMH’s competitiveness for the health check-up services, which is IMH’s main business.