Analysts Recommend “BUY” BCH in Unison, Giving a Target Price as High as ฿21.05/share!

KTB Securities (Thailand) Public Company Limited (KTBST) has reiterated “BUY” rating on Bangkok Chain Hospital Public Company Limited (BCH) with an unchanged DCF-based target price of ฿19.10/share, assuming weighted average cost of capital (WACC) of 7% and terminal growth of 3%.

KTBST has given a positive view on BCH’s outlook as every 5% increase in Social Security scheme’s payment will boost BCH’s net profit by 13%. For its chain hospitals, BCH expects World Medical hospital to reach a new high in 3Q19E while Kasemrad Ramkamhaeng hospital’s EBITDA to return to positive in 3Q19E from Social Security Office payment. Thus, KTBST maintained its estimation of BCH’s net profit in 2019 at 1.16 billion baht, increasing 6% YoY.

Beside KTBST, top security companies also give “BUY” recommendation on BCH. SCBS gives a target price at ฿20.50/share, LHS at ฿19.00/share, FSS at ฿21.00/share, ASP at ฿21.00/share and Trinity at ฿21.05/share.