CHG to Set New Earnings Records in 2Q21, DBS Vickers Recomm. “BUY” with a TP of ฿4.0


DBS Vickers Securities (DBSVS) maintained a “BUY” recommendation on CHG with a revised target price of 4.00 baht per share, anticipating a 31% and 7% increase in net income in 2021-2022, respectively. Impressive growth in 2021 would have to be credited to Covid-19 and the establishment of two new hospitals, as well as efficient operations management.

Chularat Hospital Public Company Limited (CHG) is one of Eastern Thailand’s leading private hospitals, with a total of 14 clinic branches. In 1Q21, general patients accounted for 59% of revenue, Social Security accounted for 32%, and other government schemes accounted for 9%.

Owing to Thailand’s third wave of Covid-19 outbreak, revenue from Covid-19 testing services grew massively between April and May 2021. Clients for daily testing grew from 300 to 1,000. Meanwhile, the IPD bed occupancy rate for Covid-19 patients and the Hospitel was 70-80% and 60%, respectively, in 2Q21.

Apart from Covid-19-related services, revenue grew both YoY and QoQ in April-May 2021, primarily from ER, lab, and heart center.

CHG is expected to report a record net profit in 2Q21 at 330-350 million baht, increased from a net profit of 156 million baht in 2Q20 and 252 million baht in 1Q21.

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