Chularat Hospital Public Company Limited (CHG) rose ฿0.10/share or 2.60% to ฿3.94/share in the morning session on Wednesday, June 30, 2021, with a trading value of 618 million baht.
KTBST Securities (KTBST) reiterates a “BUY” rating on CHG but raise the target price to 4.00 baht from 3.00 baht based on DCF, assuming WACC of 7.3% and terminal growth of 2.5%, which is equivalent to 2021E PER of 36x. According to an analyst meeting on May 20, KTBST is positive about the company’s guidance. First, IPD revenue is forecasted to increase given a significant number of COVID-19 patients (200 beds and 700 beds at its hospital). Second, OPD revenue should remain high on the back of COVID-19 tests, although the number of COVID-19 tests has dropped to 500 per day from 1,500 recorded in mid-April 2020. Last, revenue from hospital management is estimated at 65-70 million baht, higher compared to that in 1Q21 when the company recognized such revenue for just two months.
KTBST raised 2021E/2022E net profit forecast by 21%/15%to 1.18 billion baht (+35%YoY)/Bt1.20bn (+2%YoY), as KTBST revised up IPD/OPD revenue assumption (including revenue from COVID-19 tests and admission). In 2Q21E, KTBST forecast revenue to grow significantly in expectation of sizable revenue from hospital management and COVID-19 related activities.