The Best Time of Hospital Stocks?

Just by hearing a thunderclap during the rainy season, the small and medium hospital stocks are all delighted while being drenched with the refreshing drop of rain in this season.

The medium and small hospital stocks will be more delighted, if the rainy season comes early this year, which would mean a better result of the 2nd and 3rd quarter’s financial statements, and of course, the higher share price!

Small and medium hospital stocks were being speculated due to the very simple reason: people are often sick during the rainy season while hospital could gain higher revenue from a higher number of Thai patients, thus, making these months of the year a high season for hospital stocks.

Bangkok Chain Hospital Public Co., Ltd. (BCH), Ekachai Medical Care PCL (EKH), Ladprao General Hospital PCL (LPH), Wattanapat Hospital Trang Co., Ltd. (WPH), and Chularat Hospital PCL (CHG) are those who would be benefited from this season.

While the high season of large hospital stocks such as Bumrungrad Hospital Public Co Ltd (BH) and Bangkok Dusit Medical Services (BDMS) would be in the 1st and 4th quarter from a higher number of foreign visitors as their core profit.

To emphasize the low and high season,  the financial statement result in Q1/19 of the medium and small hospital stocks were quite a disappointment. The hospital such as LPH has a net profit sharply fallen to THB 35.46 million or 52.96% when compared to the same period of the last year, showing a net profit of THB 75.9 million.

CHD was also in the same situation, its net profit in the first quarter of 2019 was THB 179.30 million, declined by 14 million or 7% when compared to the same period of the last year, showing a net profit of THB 193.48 million.

On the part of WPH, the situation seems to worsen. The hospital turned to a net loss of THB 6.27 million, decreased by THB 31.9 million or 124.5% when compared to the same period of the last year, showing a net profit of THB 25.63 million.

The hospitals with quite a good performance such as BCH, showed a net profit of THB 248.1 million, increased by THB 33.5 million or 15.6% when compared to the same period of the last year, showing a net profit of THB 214.56 million.
A net profit of EKH was THB 44.70 million, increased by THB 22.69 million or 103.09% when compared to the same period of the last year, showing a net profit of THB 22.01 million.

keeping one’s fingers crossed for a turnover of some unwell medium and small hospital stocks whether it can be recovered in Q1/2019??
In the case of some hospitals with good performances, are they going to be better??