Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

Bumrungrad Hospital Pub Co / Equity Bottom-Up

<ul><li>We maintain a Neutral rating with a more positive outlook on both the fundamentals and the tactical positioning.</li><li>The stock price has declined by 15% since the 3Q24 earnings announcement.</li><li>Hence, the upside relative to the new target price of Bt236.00 with a required return of 4.0% (previously Bt242.00 with a required return of 3.9%) has increased to +5%. This shifts the fundamental recommendation to neutral (previously overvalued).</li></ul>

We maintain a Neutral rating with a more positive outlook on both the fundamentals and the tactical positioning.The stock price has declined by 15% since the 3Q24 earnings announcement.Hence, the upside relative to the new target price of Bt236.00 with a required return of 4.0% (previously Bt242.00 with a required return of 3.9%) has increased to +5%. This shifts the fundamental recommendation to neutral (previously overvalued).

Bumrungrad Hospital - Earnings Forecasts Revised Down to Reflect Slower Foreign Patients

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bumrungrad-hospital-pub-co" target="_blank" data-smartkarma-citation="entities:883:1" rel="noopener">Bumrungrad Hospital Pub Co (BH TB)</a> reported 5% YoY revenue decline in 3Q24, due to negative geo-political impact (international patient revenue decline) and lower revenue intensity (lesser contribution from inpatient).</li>
<li>In 3Q24, Bumrungrad’s international patient revenue declined 7% YoY. Revenue decline was mainly due to downturns in Kuwait (-67% YoY), UAE (-37%), Cambodia (-15%), and Myanmar (-4%).</li>
<li>We are anticipating a sequentially weak 4Q24. Since reporting 3Q24 result, Bumrungrad shares have corrected ~20%. We are not seeing any immediate recovery.</li>
</ul>



Bumrungrad Hospital Pub Co (BH TB) reported 5% YoY revenue decline in 3Q24, due to negative geo-political impact (international patient revenue decline) and lower revenue intensity (lesser contribution from inpatient).
In 3Q24, Bumrungrad’s international patient revenue declined 7% YoY. Revenue decline was mainly due to downturns in Kuwait (-67% YoY), UAE (-37%), Cambodia (-15%), and Myanmar (-4%).
We are anticipating a sequentially weak 4Q24. Since reporting 3Q24 result, Bumrungrad shares have corrected ~20%. We are not seeing any immediate recovery.


Bumrungrad Hospital (BH TB): Lower Revenue From International Patients Weighed on 3Q24 Result

<ul><li>We upgrade our rating to Neutral (previously Underperform) with a more positive outlook on both the fundamental and tactical aspects.</li><li>The stock price has declined by 4% since our previous report, reducing the downside to -8% relative to the previous fair value (FV) of Bt242 (based on a required return of 3.9%).</li><li>The fundamental recommendation has therefore been upgraded to overvalued (previously sell).</li></ul>

We upgrade our rating to Neutral (previously Underperform) with a more positive outlook on both the fundamental and tactical aspects.The stock price has declined by 4% since our previous report, reducing the downside to -8% relative to the previous fair value (FV) of Bt242 (based on a required return of 3.9%).The fundamental recommendation has therefore been upgraded to overvalued (previously sell).

Bumrungrad Hospital - Downbeat 3Q24 Earnings; 4Q24E to Fall Further QoQ

<ul><li>We initiate coverage on BH with an Underperform rating.</li><li>Negative valuation metrics indicate a bearish outlook, suggesting potential downside of -12% to the current fair price, along with slow long-term growth prospects and very limited tactical upside in the short term.</li><li>KTX has assessed a fair value of Bt242.00, based on the earnings yield method and a required return of 3.9%, which equates to a P/E ratio of 26x.</li></ul>

We initiate coverage on BH with an Underperform rating.Negative valuation metrics indicate a bearish outlook, suggesting potential downside of -12% to the current fair price, along with slow long-term growth prospects and very limited tactical upside in the short term.KTX has assessed a fair value of Bt242.00, based on the earnings yield method and a required return of 3.9%, which equates to a P/E ratio of 26x.

Bumrungrad Hospital - Low 3-Year Earnings Growth

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bumrungrad-hospital-pub-co" target="_blank" data-smartkarma-citation="entities:883:1" rel="noopener">Bumrungrad Hospital Pub Co (BH TB)</a> has reported mixed performance in 2Q24, with revenue growing 3% YoY to THB6,331M. However, bottomline growth outpaced the revenue growth.</li>
<li>We are cautiously optimistic about the future growth prospect of the company as well as valuation multiple expansion prospect due to intensifying competition in attracting international patients.</li>
<li>In recent times, revenue contribution from international patients has not changed much and is hovering around a range of 53–55%, significantly lower than pre-COVID time’s range of 64–67%.</li>
</ul>



Bumrungrad Hospital Pub Co (BH TB) has reported mixed performance in 2Q24, with revenue growing 3% YoY to THB6,331M. However, bottomline growth outpaced the revenue growth.
We are cautiously optimistic about the future growth prospect of the company as well as valuation multiple expansion prospect due to intensifying competition in attracting international patients.
In recent times, revenue contribution from international patients has not changed much and is hovering around a range of 53–55%, significantly lower than pre-COVID time’s range of 64–67%.


Bumrungrad Hospital (BH TB): Cautiously Optimistic on Growth Prospect Amid Intensifying Competition

Thailand

Bumrungrad Hospital Public Company Limited, through its subsidiaries,  owns and operates the Bumrungrad Hospital. Located in Bangkok, the Hospital has capacity of international standard medical care with 554 beds for inpatients and approximately 125 clinic examination suites that can serve up to 3,000 outpatients daily.

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Bumrungrad Hospital Pub Co (BH TB)

Bumrungrad Hospital - Earnings Forecasts Revised Down to Reflect Slower Foreign Patients

We maintain a Neutral rating with a more positive outlook on both the fundamentals and the tactical positioning. The stock price has declined by...

Krungthai XSpring

Bumrungrad Hospital (BH TB): Lower Revenue From International Patients Weighed on 3Q24 Result

Bumrungrad reported 5% YoY sales decline in 3Q24, mainly due to negative geo-political impact on international patient revenue, which declined 7%...

Tina Banerjee

Bumrungrad Hospital - Downbeat 3Q24 Earnings; 4Q24E to Fall Further QoQ

We upgrade our rating to Neutral (previously Underperform) with a more positive outlook on both the fundamental and tactical aspects.

Krungthai XSpring

Bumrungrad Hospital - Low 3-Year Earnings Growth

KTX has assessed a fair value of Bt242.00, based on the earnings yield method and a required return of 3.9%, which equates to a P/E ratio of 26x.

Krungthai XSpring

Bumrungrad Hospital (BH TB): Cautiously Optimistic on Growth Prospect Amid Intensifying Competition

Bumrungrad reported mixed 2Q24 performance with revenue up 3% YoY, but bottomline growth outpaced revenue. International patient revenue...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Bumrungrad Hospital - Earnings Forecasts Revised Down to Reflect Slower Foreign Patients

We maintain a Neutral rating with a more positive outlook on both the fundamentals and the tactical positioning. The stock price has declined by...

Krungthai XSpring

Bumrungrad Hospital (BH TB): Lower Revenue From International Patients Weighed on 3Q24 Result

​Bumrungrad reported 5% YoY sales decline in 3Q24, mainly due to negative geo-political impact on international patient revenue, which declined 7%...

Tina Banerjee

Bumrungrad Hospital - Downbeat 3Q24 Earnings; 4Q24E to Fall Further QoQ

We upgrade our rating to Neutral (previously Underperform) with a more positive outlook on both the fundamental and tactical aspects.

Krungthai XSpring

Bumrungrad Hospital - Low 3-Year Earnings Growth

KTX has assessed a fair value of Bt242.00, based on the earnings yield method and a required return of 3.9%, which equates to a P/E ratio of 26x.

Krungthai XSpring

Bumrungrad Hospital (BH TB): Cautiously Optimistic on Growth Prospect Amid Intensifying Competition

​Bumrungrad reported mixed 2Q24 performance with revenue up 3% YoY, but bottomline growth outpaced revenue. International patient revenue...

Tina Banerjee

Bumrungrad reported 5% YoY sales decline in 3Q24, mainly due to negative geo-political impact on international patient revenue, which declined 7%...

Bumrungrad reported mixed 2Q24 performance with revenue up 3% YoY, but bottomline growth outpaced revenue. International patient revenue...