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

Pi Research

Thai Equity - Bottom-up - Equities

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Equity Bottom-Up

<p><strong>We maintain BUY rating with a new 2021E target price of Bt29.00, from Bt32.00, derived from 28.3xPE, which is -1SD of SET Healthcare sector’s 3-year trading average.</strong></p><div>•RJH reported 3Q20 recurring profit at Bt106m (+18%YoY, +63%QoQ). While the patient's traffic was still weak, the Covid-19 diagnostic service helped to boost its performance.</div><div>
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</div><div>•We revised down our 2020-22 net profit forecasts by 7%, 20%, and 22%, respectively, mainly reflected patient traffic trend which should be affected by the more hygienic behavior in the population.</div><div>
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</div><div>•RJH announced an interim dividend of Bt0.15/share, XD on 20-Nov-20.</div><div>
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</div><p><strong>We like RJH for it is one of the cheapest hospital stock in the sector. Meanwhile, it has an expansion plan of two hospitals in the pipeline, which would top up its services capacity by more than 60% in the next two years.</strong></p>

We maintain BUY rating with a new 2021E target price of Bt29.00, from Bt32.00, derived from 28.3xPE, which is -1SD of SET Healthcare sector’s 3-year trading average.•RJH reported 3Q20 recurring profit at Bt106m (+18%YoY, +63%QoQ). While the patient's traffic was still weak, the Covid-19 diagnostic service helped to boost its performance.
 
•We revised down our 2020-22 net profit forecasts by 7%, 20%, and 22%, respectively, mainly reflected patient traffic trend which should be affected by the more hygienic behavior in the population.
 
•RJH announced an interim dividend of Bt0.15/share, XD on 20-Nov-20.
 
We like RJH for it is one of the cheapest hospital stock in the sector. Meanwhile, it has an expansion plan of two hospitals in the pipeline, which would top up its services capacity by more than 60% in the next two years.

Record High Revenue Thanks to Covid-19 Diagnostics