Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

Bangkok Chain Hospital / Equity Bottom-Up

We initiate coverage on BCH with a BUY rating, based on a target price of Bt21, which is derived from a DCF methodology (WACC 6.8% and terminal growth 0%), implying 43.8xPE’19E, a a 19% premium to the Thai Health Care sector. The story:<ul>
<li>Hospital with the most number of Social Security registered against an ageing society theme.</li>
<li>Market overreacted to earnings disappointment in 4Q18.</li>
<li>New strategies attract foreign patients, boosting flagship hospital</li>
<li>IVF Lab to create new growth opportunities</li>
<li>Adding three hospitals in areas of large potential demand.</li>
</ul>Risks: Lack of medical personnel &amp; changes in social security policy

We initiate coverage on BCH with a BUY rating, based on a target price of Bt21, which is derived from a DCF methodology (WACC 6.8% and terminal growth 0%), implying 43.8xPE’19E, a a 19% premium to the Thai Health Care sector. The story:
Hospital with the most number of Social Security registered against an ageing society theme.
Market overreacted to earnings disappointment in 4Q18.
New strategies attract foreign patients, boosting flagship hospital
IVF Lab to create new growth opportunities
Adding three hospitals in areas of large potential demand.
Risks: Lack of medical personnel &amp; changes in social security policy

BCH: Private Chain Hospital with High Sustainable Growth

Vibhavadi Medical Center / Equity Bottom-Up

We initiate coverage of VIBHA with a BUY rating, based on a target price of Bt3.0 derived from 38xPE’19E, which is equal to the stock’s five-year average trading range and at a 10% premium to the Thai Healthcare sector. 
The story:
<ul class="">
<li>The strategy based on inorganic growth</li>
<li>Harvest period and reinvestment support a bright outlook</li>
<li>Supportive environment from an aging society</li>
<li>Currently the cheapest hospital chain in Thailand</li>
</ul>
Risks:
<ul>
<li>Supply of medical staff and access to professional expertise</li>
<li>Healthcare industry’s sensitivity to legal issues</li>
</ul>
Background: 
Established in 1986, Vibhavadi Hospital Public Company Limited (VIBHA), operates and holds stakes in hospitals in Central and Northern Thailand. Currently, the group’s hospitals have a total of 2,172 beds via an 83.58% holding in Chiang Mai Ram Hospital (CMR), a 40.75% stake in Vibharam Hospital and a 28.57% stake in Bangpo Hospital, as well as the original Vibhavadi Hospital.

We initiate coverage of VIBHA with a BUY rating, based on a target price of Bt3.0 derived from 38xPE’19E, which is equal to the stock’s five-year average trading range and at a 10% premium to the Thai Healthcare sector. 
The story:

The strategy based on inorganic growth
Harvest period and reinvestment support a bright outlook
Supportive environment from an aging society
Currently the cheapest hospital chain in Thailand

Risks:

Supply of medical staff and access to professional expertise
Healthcare industry’s sensitivity to legal issues

Background: 
Established in 1986, Vibhavadi Hospital Public Company Limited (VIBHA), operates and holds stakes in hospitals in Central and Northern Thailand. Currently, the group’s hospitals have a total of 2,172 beds via an 83.58% holding in Chiang Mai Ram Hospital (CMR), a 40.75% stake in Vibharam Hospital and a 28.57% stake in Bangpo Hospital, as well as the original Vibhavadi Hospital.

VIBHA: Large Hospital Chain at the Cheapest Price

Thailand

Ekachai Medical Care PCL offers medical services. The Company's medical services include plastic surgery, skin and beauty treatments, pediatric care, obstetrics, surgical procedures, orthopedic care, opthalmology care, emergency trauma care, dialysis care, dental care, and physical therapy. Ekachai Medical Care operates in Thailand.

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Ekachai Medical Care (EKH TB)

BCH: Private Chain Hospital with High Sustainable Growth

We initiate coverage on BCH with a BUY rating, based on a target price of Bt21, which is derived from a DCF methodology (WACC 6.8% and terminal...

Pi Securities PCL, Thailand

VIBHA: Large Hospital Chain at the Cheapest Price

We initiate coverage of VIBHA with a BUY rating, based on a target price of Bt3.0 derived from 38xPE’19E, which is equal to the stock’s five-year...

Pi Securities PCL, Thailand

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