The Covid-19 resurgence in Thailand, particularly among migrant working groups, at the end of last year has sparked another economic crisis. The “new wave” of coronavirus outbreak was confirmed after infections spiked in Samut Sakhon, the regional seafood hub and Thailand’s biggest seafood distribution center, and more than 500 cases have been reported in a single day.
Locally transmitted Covid-19 cases have now been reported in 54 provinces, plunging Thailand’s economy into a worse recession.
As luck would have it, Ekachai Medical Care Public Company Limited (EKH), which is located in the biggest Covid-19 hot spot Samut Sakhon, became one of companies that derive the benefits from virus resurgence despite EKH was expected to be affected severely at first.
A dramatic surge in Covid-19 in mid-Dec has soon after driven investors to panic selling in EKH, the share price on Monday, Dec 21 2020, plummeted 8.40%, however, the price has been gradually improved, gaining by 18% in a week, showing that the ongoing outbreak has no significantly impact on EKH.
Furthermore, the new wave of coronavirus has boosted the number of Covid-19 testing clients continuously. For the year to date, there were more than 3,000 clients who received the aforesaid service, therefore, EKH expected to record about 15 million baht of revenue in 4Q20.
Along with the continued increase of inpatients and outpatients from RSV infection, bringing bed occupancy rate to 80-90%.
EKH turned a crisis into an opportunity.!!
Analysts projected EKH a robust rebound this year, targeting a profit 49 million baht for the year 2020, and have revised a target price to ฿6.20/share