External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Thematic (Sector/Industry)

<ul><li>We expect the sector’s earnings in FY24 to hinge on cost efficiency, as top line growth will still depend on the shift towards more BPJS volume.</li><li>Healthcare has historically benefited from election spending; we expect next govt to sustain healthcare budget allocation at 5-6% to APBN.</li><li>We maintain OW rating as we expect sector to sustain earnings growth at 13.2% in FY24F while valuation is at discount to regional peers.</li></ul>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.

We expect the sector’s earnings in FY24 to hinge on cost efficiency, as top line growth will still depend on the shift towards more BPJS volume.Healthcare has historically benefited from election spending; we expect next govt to sustain healthcare budget allocation at 5-6% to APBN.We maintain OW rating as we expect sector to sustain earnings growth at 13.2% in FY24F while valuation is at discount to regional peers.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.

Equity Bottom-Up

<ul><li>Following strong 9M23 earnings, we see further earnings upside from cost-saving initiatives and full IT implementation to yield better patient velocity and thus improving BOR.</li><li>We raise our FY23-FY24 estimates by 1%/ 7% and DCF-based TP to IDR1,800/share, and reiterate Buy rating. Strong growth in both inpatient and outpatient segments.</li><li>HEAL reported 3Q23 Earnings of IDR 146 bn. (+56.8% qoq , +80.6% yoy), with cumulative 9M23 net profit stood at IDR 349 bn. (+42.1% yoy). </li></ul>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.

Following strong 9M23 earnings, we see further earnings upside from cost-saving initiatives and full IT implementation to yield better patient velocity and thus improving BOR.We raise our FY23-FY24 estimates by 1%/ 7% and DCF-based TP to IDR1,800/share, and reiterate Buy rating. Strong growth in both inpatient and outpatient segments.HEAL reported 3Q23 Earnings of IDR 146 bn. (+56.8% qoq , +80.6% yoy), with cumulative 9M23 net profit stood at IDR 349 bn. (+42.1% yoy). 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.

Medikaloka Hermina (HEAL.IJ) - Upside from Improving Operational Efficiency

<ul>
<li>We see the unfortunate case of worsening air pollution in Greater Jakarta to potentially result in rising hospital visits in late 3Q23- early 4Q23, as indicated by our channel checks to the listed hospitals.</li>
<li>We think the BPJS payer mix will most likely dominate hospital visits and expect HEAL to get high referrals volume of BPJS, amid its high presence in Jabodetabek and pediatrician brand equity.</li>
<li>Our channel check with hospitals indicated rising cases of ISPA. Our check with MIKA indicated there is an increase in ISPA cases, including to infants. </li>
</ul>
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.


We see the unfortunate case of worsening air pollution in Greater Jakarta to potentially result in rising hospital visits in late 3Q23- early 4Q23, as indicated by our channel checks to the listed hospitals.
We think the BPJS payer mix will most likely dominate hospital visits and expect HEAL to get high referrals volume of BPJS, amid its high presence in Jabodetabek and pediatrician brand equity.
Our channel check with hospitals indicated rising cases of ISPA. Our check with MIKA indicated there is an increase in ISPA cases, including to infants. 

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.

Healthcare - Channel checks indicated rising respiratory cases in Greater Jakarta hospitals

<ul><li>Week KTA: Bright outlook for the hospitals business We hosted conference calls with several hospital companies which each have a promising outlook</li><li>All the hospitals are still keen to go ahead with their expansion plans</li><li>Meanwhile, with the enactment of the Omnibus Bill, all hospitals will benefit from an influx of skilled overseas-graduated medical officers as they will be able to provide treatments that were only available in the overseas healthcare market</li></ul>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.

Week KTA: Bright outlook for the hospitals business We hosted conference calls with several hospital companies which each have a promising outlookAll the hospitals are still keen to go ahead with their expansion plansMeanwhile, with the enactment of the Omnibus Bill, all hospitals will benefit from an influx of skilled overseas-graduated medical officers as they will be able to provide treatments that were only available in the overseas healthcare marketContent 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.

Healthcare - Healthcare Week KTA: Bright outlook for the hospitals business

<ul><li>Omnibus Bill review: transformation We maintain our OVERWEIGHT stance on the healthcare sector as we have identified several key catalysts in the supply side reform, continuity of the JKN program, and greater support from the government in accelerating the self-sufficiency in pharmaceutical products as well as healthcare innovations</li><li>We expect MIKA and HEAL to be the key beneficiaries of both deregulation in rules on healthcare officers as well as the transformation of the JKN program</li><li>PRDA, meanwhile, will also benefit from a higher budget for preventive measures in the JKN program.UHC Program Updates</li></ul>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.

Omnibus Bill review: transformation We maintain our OVERWEIGHT stance on the healthcare sector as we have identified several key catalysts in the supply side reform, continuity of the JKN program, and greater support from the government in accelerating the self-sufficiency in pharmaceutical products as well as healthcare innovationsWe expect MIKA and HEAL to be the key beneficiaries of both deregulation in rules on healthcare officers as well as the transformation of the JKN programPRDA, meanwhile, will also benefit from a higher budget for preventive measures in the JKN program.UHC Program UpdatesContent 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.

Healthcare - Omnibus Bill review: Healthcare transformation

Indonesia

PT Medikaloka Hermina Tbk owns and operates a chain of hospitals. The Hospital provides professional healthcare services, as well as focuses on obstetric and pediatric care. Medikaloka Hermina also offers consulting services. Medikaloka Hermina serves patients in Indonesia.

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Medikaloka Hermina (HEAL IJ)

Healthcare: FY24 Outlook

We expect the sector’s earnings in FY24 to hinge on cost efficiency, as top line growth will still depend on the shift towards more BPJS volume.

BRI Danareksa Research