In today’s briefing:
- Pre-IPO Concord Healthcare Group (PHIP Updates) – Some Points Worth the Attention
- Thonburi Healthcare Group (THG TB): High Debt Has Clouded Near-Term Growth Prospect
Pre-IPO Concord Healthcare Group (PHIP Updates) – Some Points Worth the Attention
- Concord’s financial performance seems improving on the surface,but a closer look reveals that the sudden explosive revenue increase in 2021 was mainly due to an acquisition, with potential risks behind.
- We’ve doubts about Concord’s endogenous growth capability. If Concord’s hospitals cannot make a profit, then any further expansion is just a beautiful story and cannot bring expected returns to investors.
- Concord conducted a total of four rounds of financing, with a valuation of approximately RMB7.2 billion. However, based on our analysis, its valuation could be lower than peers.
Thonburi Healthcare Group (THG TB): High Debt Has Clouded Near-Term Growth Prospect
- Thonburi Healthcare Group (THG TB) has underperformed most of its peers over the last six months. Thus far this year, the company’s financial performance also remained unimpressive.
- Despite a healthy 29% YoY increase in normalized medical services revenue, normalized net profit decreased 8% YoY in 3Q23 as the company experienced significantly higher financial costs.
- Although the company is repaying debts, debt level is still elevated and is expected to remain so in the near-term due to upcoming capex plans.
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