In today’s briefing:
- Ramsay and KKR’s Game of Cat and Mouse
- Bumrungrad Hospital Pub Co (BH TB): Flying High on Return of Medical Tourism
- Jafron Biomedical (300529CH) 22H1- Possibility of Logic Reversal and Upside Potential of Stock Price
Ramsay and KKR’s Game of Cat and Mouse
- Ramsay Health Care (RHC AU) disclosed that the KKR & Co Inc (KKR US) consortium withdrew its indicative proposal but remains committed to the alternative proposal, which the Board earlier rejected.
- The alternative proposal, while inferior to the indicative proposal, is still attractive and better than the status quo of no deal. The Board will engage for an improved offer.
- The value gap between the parties is not huge, and a deal is possible. The upside (20% to alternative proposal) vs downside (-9% to undisturbed price) is worth a punt.
Bumrungrad Hospital Pub Co (BH TB): Flying High on Return of Medical Tourism
- Bumrungrad Hospital Pub Co (BH TB) reported strong Q2 2022 results, with revenue growth of 64% y/y, mainy driven by a 121% y/y increase in revenue from non-Thai patients.
- Despite international patient volume is recovering, it is still lower than pre-COVID levels. Non-Thai patients contributed 66.2% of total revenue in Q2 2019, higher than 62.3% reported for Q2 2022.
- Thailand targets 10 million foreign tourist arrivals this year, which should augur well for Bumrungrad.
Jafron Biomedical (300529CH) 22H1- Possibility of Logic Reversal and Upside Potential of Stock Price
- The centralized procurement of hemoperfusion cartridge is the major risk. This is why capital market is divided over the logic of long-term growth when performance continued to grow in 2022H1.
- Jafron is not without chances to get out of a passive situation. Either business diversification or internationalization would help re-establish the investment logic and improve the outlook.
- The valuation of Jafron Biomedical Co Ltd (300529 CH)has entered the “hitting zone”. After continuous correction, there could be some rebound, like 10%-20% upside potential. Short term trade is recommended.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars