ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Siloam International Hospitals / Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/siloam-international-hospitals" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospitals (SILO IJ)</a> held an analyst briefing recently to highlight the strong recovery of its base-case business, with very little contribution from COVID-related treatments by year-end.</li>
<li>Revenues on a monthly basis have hit record highs in December and January, with increased efficiencies and improving profitability due to cost controls.</li>
<li>
<a href="https://www.smartkarma.com/entities/siloam-international-hospitals" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospitals (SILO IJ)</a> remains an interesting recovery play but it has emerged even stronger from the pandemic and valuations are attractive versus peers and history. </li>
</ul>



Siloam International Hospitals (SILO IJ) held an analyst briefing recently to highlight the strong recovery of its base-case business, with very little contribution from COVID-related treatments by year-end.
Revenues on a monthly basis have hit record highs in December and January, with increased efficiencies and improving profitability due to cost controls.

Siloam International Hospitals (SILO IJ) remains an interesting recovery play but it has emerged even stronger from the pandemic and valuations are attractive versus peers and history. 


Siloam International Hospitals (SILO IJ) - Core Strength in Display

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Although the operating environment is still challenging, <a href="https://www.smartkarma.com/entities/kpj-healthcare-berhad" target="_blank" data-smartkarma-citation="entities:877:1" rel="noopener">KPJ Healthcare (KPJ MK)</a>’s recovery in financial performance is expected to continue in 2022.</li>
<li>The largest shareholder was reportedly in talk to private equity player to take KPJ Healthcare private. Emerging market hospital players are consolidating.</li>
<li>In December, the company appointed its new chief operating officer effective immediately.</li>
</ul>


Although the operating environment is still challenging, KPJ Healthcare (KPJ MK)’s recovery in financial performance is expected to continue in 2022.
The largest shareholder was reportedly in talk to private equity player to take KPJ Healthcare private. Emerging market hospital players are consolidating.
In December, the company appointed its new chief operating officer effective immediately.


KPJ Healthcare (KPJ MK): Continued Recovery; Privatization Talk to Provide Cushion for Downside Risk

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<p><a href="https://www.smartkarma.com/entities/siloam-international-hospitals" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospitals (SILO IJ)</a> is Indonesia's largest private hospital group with a total of 40 hospitals across the country at differing levels of maturity, specialisation, and profitability.</p>
<p><a href="https://www.smartkarma.com/entities/siloam-international-hospitals" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospitals (SILO IJ)</a> booked revenue of IDR5.9tn in 9M2021, or growth of  +46.7% YoY. EBITDA for 9M2021 was IDR1.5tn, a YoY increase of +107.2%, with expanding EBITDA margins.This was driven by testing  and treatment of COVID-19 patients but more importantly by a recovery in its non-COVID related base-case business.</p>
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<p><a href="https://www.smartkarma.com/entities/siloam-international-hospitals" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospitals (SILO IJ)</a> continued to see operational growth and the recovery of its base case (non-COVID) business in 3Q2021.</p>
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<p>The company's overall occupancy rate increased slightly for 9M2021 to 53% versus 52.7% for 9M2020, with outpatient visits hitting 1.7m, an increase of +8% YoY from 1.6m for 9M2020.</p>
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<p><a href="https://www.smartkarma.com/entities/siloam-international-hospitals" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospitals (SILO IJ)</a> continues to develop its mobile application called MySiloam, helping to improve efficiency and allowing patients to receive a more seamless experience, with the online function directly enhancing Siloam’s offline services.</p>
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<div>Corporate &amp; insurance patients are seeing strong growth, especially for medical check-ups, and are the largest contributor to revenues as a patient type.</div>
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<p><a href="https://www.smartkarma.com/entities/siloam-international-hospitals" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospitals (SILO IJ)</a> continues to look like good value versus its peers both in Indonesia, as well as in the region, trading on 7.4x FY2021 EV/EBITDA and 7.0x FY22E EV/EBITDA. It provides exposure to a high growth portfolio of hospitals, which stand it in good stead to continue to see strong growth beyond the pandemic.</p>
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Siloam International Hospitals (SILO IJ) is Indonesia's largest private hospital group with a total of 40 hospitals across the country at differing levels of maturity, specialisation, and profitability.
Siloam International Hospitals (SILO IJ) booked revenue of IDR5.9tn in 9M2021, or growth of  +46.7% YoY. EBITDA for 9M2021 was IDR1.5tn, a YoY increase of +107.2%, with expanding EBITDA margins.This was driven by testing  and treatment of COVID-19 patients but more importantly by a recovery in its non-COVID related base-case business.

Siloam International Hospitals (SILO IJ) continued to see operational growth and the recovery of its base case (non-COVID) business in 3Q2021.



The company's overall occupancy rate increased slightly for 9M2021 to 53% versus 52.7% for 9M2020, with outpatient visits hitting 1.7m, an increase of +8% YoY from 1.6m for 9M2020.


Siloam International Hospitals (SILO IJ) continues to develop its mobile application called MySiloam, helping to improve efficiency and allowing patients to receive a more seamless experience, with the online function directly enhancing Siloam’s offline services.


Corporate &amp; insurance patients are seeing strong growth, especially for medical check-ups, and are the largest contributor to revenues as a patient type.


Siloam International Hospitals (SILO IJ) continues to look like good value versus its peers both in Indonesia, as well as in the region, trading on 7.4x FY2021 EV/EBITDA and 7.0x FY22E EV/EBITDA. It provides exposure to a high growth portfolio of hospitals, which stand it in good stead to continue to see strong growth beyond the pandemic.


Siloam International Hospitals (SILO IJ) - Rising Base Cases and Profitability

External broker reports(aggregated public sources), TA Securities Holdings Berhad

TA Securities Holdings Bhd

External broker reports(aggregated public sources)

<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<p><a href="https://www.smartkarma.com/entities/siloam-international-hospital" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospital (SILO IJ)</a> released its 1H2021 results and was able to sustain its positive momentum for revenue, EBITDA and net profit performance from 1Q2021 to 2Q2021.</p>
<p>The numbers have been driven both by testing and treatment for COVID but also a recovery in case bases as the fear of visiting hospitals subsided during the quarter.</p>
<p><a href="https://www.smartkarma.com/entities/siloam-international-hospital" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospital (SILO IJ)</a> achieved a net profit margin of 8.0% in 2Q2021 compared with a negative 13.9% in 2Q2020. The company saw YoY EBITDA growth of +487%, booking IDR478bn in 2Q2021 compared with IDR82bn in 2Q2020.</p>
<p>The company conducted a total of 32,000  surgeries in 1H2021, only -10.2% lower than the number of surgeries conducted in pre-COVID 1H2019. Inpatient and outpatient numbers also saw significant improvements in 1H2021</p>
<p> Of the 18 ramping up hospitals which were unprofitable in 2019, nine of these are now profitable, with a total positive EBITDA contribution of IDR150bn in 1H2021. </p>
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<p><a href="https://www.smartkarma.com/entities/siloam-international-hospital" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospital (SILO IJ)</a> continues to strengthen its relationships with corporate and insurance clients, with a corporate loyalty program, as well as consulting services on health issues.</p>
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<p>The company continues to invest in new technology and has seen very strong growth in bookings through its My Siloam app, which saw +321% QoQ growth in 2Q2021 versus 1Q2021.</p>
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<div class="content-highlight">
<p><a href="https://www.smartkarma.com/entities/siloam-international-hospital" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospital (SILO IJ)</a> is the cheapest of Indonesian hospital stocks trading on 8.7x FY21 EV/EBITDA and it has seen a dramatic turnaround in profitability partly due to COVID-19 related but also the pandemic spurred the company to focus on its loss-making hospitals, which have seen significant improvements. We continue to take a positive view of <a href="https://www.smartkarma.com/entities/siloam-international-hospital" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospital (SILO IJ)</a>, given its ongoing progress on improving profitability and attractive valuation versus its peers. </p>
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Siloam International Hospital (SILO IJ) released its 1H2021 results and was able to sustain its positive momentum for revenue, EBITDA and net profit performance from 1Q2021 to 2Q2021.
The numbers have been driven both by testing and treatment for COVID but also a recovery in case bases as the fear of visiting hospitals subsided during the quarter.
Siloam International Hospital (SILO IJ) achieved a net profit margin of 8.0% in 2Q2021 compared with a negative 13.9% in 2Q2020. The company saw YoY EBITDA growth of +487%, booking IDR478bn in 2Q2021 compared with IDR82bn in 2Q2020.
The company conducted a total of 32,000  surgeries in 1H2021, only -10.2% lower than the number of surgeries conducted in pre-COVID 1H2019. Inpatient and outpatient numbers also saw significant improvements in 1H2021
 Of the 18 ramping up hospitals which were unprofitable in 2019, nine of these are now profitable, with a total positive EBITDA contribution of IDR150bn in 1H2021. 

Siloam International Hospital (SILO IJ) continues to strengthen its relationships with corporate and insurance clients, with a corporate loyalty program, as well as consulting services on health issues.


The company continues to invest in new technology and has seen very strong growth in bookings through its My Siloam app, which saw +321% QoQ growth in 2Q2021 versus 1Q2021.


Siloam International Hospital (SILO IJ) is the cheapest of Indonesian hospital stocks trading on 8.7x FY21 EV/EBITDA and it has seen a dramatic turnaround in profitability partly due to COVID-19 related but also the pandemic spurred the company to focus on its loss-making hospitals, which have seen significant improvements. We continue to take a positive view of Siloam International Hospital (SILO IJ), given its ongoing progress on improving profitability and attractive valuation versus its peers. 












Siloam International Hospital (SILO IJ) - Base Cases Improvement

Malaysia

IHH Healthcare Bhd provides healthcare services. The Company operates hospitals as well as medical centers, clinics and ancillary healthcare businesses across multiple countries, including Singapore, Malaysia, Turkey, The Peoples Republic of China, India, Hong Kong,  Macedonia, the Netherlands and Brunei.

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IHH Healthcare (IHH MK)

Siloam International Hospitals (SILO IJ) - Core Strength in Display

Siloam International Hospitals (SILO IJ) remains an interesting recovery play but it has emerged even stronger from the pandemic and valuations are...

Angus Mackintosh

KPJ Healthcare (KPJ MK): Continued Recovery; Privatization Talk to Provide Cushion for Downside Risk

This insight has analyzed the recovery of the operation of the company as reported in Q3 results and near-term outlook amid resurgence of COVID...

Tina Banerjee

Siloam International Hospitals (SILO IJ) - Rising Base Cases and Profitability

Siloam Hospital provides exposure to a high growth portfolio of hospitals in Indonesia, which stand it in good stead to see strong growth and...

Angus Mackintosh

Cautious on 2H21

Hold Ihh Healthcare Berhad: Cautious on 2H21. - By: TA Securities Holdings Bhd

TA Securities Holdings Bhd

Siloam International Hospital (SILO IJ) - Base Cases Improvement

We are positive about Siloam International Hospital (SILO IJ), given its ongoing progress on improving profitability, the recovery in its base...

Angus Mackintosh

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