Hospital stocks in Thailand are now trading at nosebleed levels with the sector average at ~50x PE, but what I’ve learnt from the past, just because a company has a high PE doesn’t mean you should ignore it if the compounded growth potential is there. Here are some snippets and the link to the rest of the article
That’s clouding the outlook for Thailand’s health-care shares, which surged more than 800 percent over the past seven years, as valuations start to look stretched amid the falling demand. Bangkok’s Bumrungrad Hospital Plc, known as the grandaddy of international clinics, has slumped 16 percent since early March after patient volumes from the United Arab Emirates, its second-biggest source of overseas visitors, fell 20 percent in the first quarter.
Sitting at the apex of the industry is Bumrungrad, which attracts more than half a million foreign patients a year and has a network of 32 referral offices everywhere from Mongolia to Ethiopia. Sixty-seven percent of revenue came from overseas visitors last quarter, company figures show. Myanmar residents were the biggest source, accounting for 8.4 percent of total patients, followed by 8.3 percent from the U.A.E. and 5.9 percent from Oman
BANPU plans to invest in power plant at home and abroad due to a downtrend in mining. 2015 revenue is expected to be equal to 2014’s thanks to cost control. It expects to list a subsidiary on the SET by the end of 2015. (Thun Hoon, 22/06/15)
Comment: BANPU’s stock price has followed that of coal prices in the past 5 years, declining from its peak of nearly THB 83 baht/share to where it is today, the continued shift of strategy to power plants is a natural move for them.
BBL is confident loan growth will achieve its target in the second half of the year without more NPLs, backed by economic recovery. It targets 3-4% growth for corporate and 6-8% for SME loans this year. (Khao Hoon, 22/06/15)
Comment: Surprisingly they had the best corporate loan growth in May
BH confident it will not suffer impact from MERS. It expects 2015 revenue to grow 10-15% as targeted. It plans to invest Bt700mn in a new hospital. (Khao Hoon, 22/06/15)
CENTEL believes the impact on MERS on Thailand will be short-lived. 2015 revenue is targeted at Bt20bn (10% growth). (Khao Hoon, 22/06/15)
ABC set revenue target for 2015 at Bt800mn, focusing on five new concerts. The company plans to add more alliances with 3-4 credit card issuers, which it expects to conclude by mid-2015. The major shareholder intends to reduce his holding from 76% to not less than 50%. (Khao Hoon, 18/02/15)
Comment: Not a bad trade by the owner, the company still doesn’t generate any profits worthy of its valuation, its unlikely to anytime in the future.
AQUA expects its performance to improve YoY as it will start booking revenue from its solar power business in Japan. Its first solar farm in Japan will commence operation in 2Q15. Further, its warehouse business, via a subsidiary, will expand its space by 70%. The company plans to list this subsidiary in the near future. (Thun Hoon, 18/02/15)
Comment: One of these days I’ll have to write down every company that is linked to solar/renewable..
BH’s shares are favored by foreign investment funds because of the high rate of return. Also, healthcare companies are of interest to global investors. (Khao Hoon, 18/02/15)
CEI plans to reduce par value to Bt0.25/share as well as increase capital via a rights offering at the ratio of 3:1 at Bt0.25/share and private placement of 95.73mn shares at not lower than 90% of market price. Management plans to focus more on renewable energy, property development and e-commerce. CEI has invested Bt80mn to acquire W. Solar shares from WIN to develop solar rooftop project. The company will change its fiscal year to end Dec31. (Thun Hoon, 18/02/15)
Comment: And let the speculation begin.
AoT: Politicians need not apply for top job – Airports of Thailand Plc (AoT) began the process of seeking a new chief executive yesterday with the new prerequisites barring applicants with political affiliations. (Bangkok Post, 14/10/14)
Comment: Well thats a positive first step
BANPU studying coal power plant expansion through a second unit for BLCP. The company reported that it has potential to add 1,100MW in the existing area but has to wait for a new PDP. (Kao Hoon, 14/10/14)
Banpu sees flat coal sales – SET-listed Banpu Plc expects zero growth in coal sales this year, says chief executive Chanin Vongkusolkit. Last year, the company sold 48 million tonnes of coal. The company is maintaining its full-year revenue target of US$3bn because coal prices have bottomed out and remain at the acceptable level of US$70/ton. (Bangkok Post, 14/10/14)
BH expects 3Q14 net profit to be record high upon recovery in foreign patient volume. The company expects revenue will reach Bt4bn to a record high in 3Q14 after gaining more revenue from UBSM in Mongolia. It expects total revenue growth of 7% YoY in 2014. (Thun Hoon, 14/10/14)
Comment: Tourism down? Doesn’t look like it by the #’s that BH is going to be pushing out. Over half of BH’s revenue’s comes from foreign patients.
MSCI will be calculating BH in its MSCI Global Standard starting May 30, while BJCHI, MEGA, NYT, and TTCL will be calculated in the MSCI Global Small Cap. (Khao Hoon, 16/05/14)
Comment: Fantastic news for all companies involved especially the new ones BJCHI n MEGA
BKI reported net profit of Bt627mn in 1Q14 and pay DPS of Bt2.75. It reduced premium growth target to 5% YoY from 15% YoY. Its portfolio investment is expected to generate return of no less than 5% YoY in 2014 and it is waiting to collect good fundamental stocks. (Khao Hoon, 16/05/14)
Comment: Well the insurance industry in Thailand still has an incredibly long way to go and more and more insurance co’s have been looking to invest in div plays in the mkt.
CHO reported 1Q14 net profit of Bt34mn, up 1,500% YoY. It said that earnings will continue to grow in 2Q14 supported by Bt1.3bn backlog on hand and with 60% of that to be booked in 2014. (Khao Hoon, 16/05/14)
AOT Strong July traffic growth — AOT reported strong traffic in July 2013, with passenger and aircraft movement growth of 16% YoY. This is the tenth month in a row that it has reported double-digit growth. (Company press release)
Comment: This is really only one of the few strongly growing large cap co’s in Thailand
BH expands in Mongolia, Phitsanulok – Bumrungrad Hospital Plc (BH), the country’s second-largest listed hospital operator, plans to spend up to Bt5bn to acquire sizeable stakes in hospitals in Phitsanulok province and Mongolia. Chairman Chai Sophonpanich said the company is conducting a feasibility study for a stake in a Mongolian facility, for which it expects to pay Bt2bn. (Bangkok Post, 19/08/13)
Comment: I love the idea of investments in both locations, Mongolia is booming and phitsanulok will be a huge new centre of Thailand in the coming decade
DEMCO Lower orders leads to target cuts — DEMCO revised down its target revenues from Bt7bn to Bt6-6.5bn after orders for 3G steel structures were lower than expected. However, the company is to bid for more projects in 2H13 worth Bt5.5bn to add to its backlog of Bt5.1bn. DEMCO also expects WEH to be listed at the end of 2014 or beginning of 2015. (Tun Hoon, 19/08/13)
LALIN 2H13 to be strong — LALIN expects a strong 2H13 with the launch of 10 new projects worth Bt4bn in 2H13, booking revenue of Bt1.5bn. It plans to issue bonds for sale to institutional investors and big retail investors. (Tun Hoon, 19/08/13) Continue reading Stocks in the news (aot, bh, demco, lalin, preb, ptt, tmb) 19.08.13
BAM on target for stock listing in 2014 – Bangkok Commercial Asset Management (BAM), the state-owned debt management firm, confirmed its plan to seek listing on the Thai stock market by mid-2014. President Krit Sesavey said it is waiting for its parent Financial Institution Development Fund (FIDF) to allow it to move forward with its listing plan, and it expects approval later this year. (Bangkok Post, 01/08/13)
Comment: I am bloody interested in seeing the assets on this company’s balance sheet!
BANPU announces par split from Bt10 to Bt1 — Banpu Plc has informed the SET that the Board of Directors has approved the change of par value of the shares from Bt10 to Bt1. The registered ordinary shares will be changed from 354,050,479 shares to 3,540,504,790 shares and the paid-up ordinary shares will be changed from 271,747,855 shares to 2,717,478,550 share. This requires shareholder’s approval in the extra general meeting (EGM) to be held on 9 Sep 2013. (SET)
Comment: Well that’s one way to try and support and sagging stock price, however the fundamentals just aren’t there yet
BH Expansion in place in 2H13 — BH expects 2Q13 profits of Bt540mn and aims to expand the number of hospital and ICU beds in its old hospital in Nana in the second half of the year to help increase the number of patients and push its profits for the year to Bt2.34bn. (Khao Hoon, 01/08/13) Continue reading Stocks in the news (bam, banpu, bh, ktb, pttgc, scc, tpoly, true, vgi) 01.08.13