Core earnings rose 62% yoy to a new record high of Bt12.6bn in FY22 as revenue grew 24% to Bt91.9bn and a record EBITDA margin of 25.1% beat the company’s target. The company’s asset value has increased by 2.75 billion baht from many hospital valuations which are done every 5 years. BDMS announced the final dividend payment of 0.30 baht per share, representing a yield of 1%, set up XD on March 8. .
Core business profit in 4Q fell 8% qoq to 3.1 billion baht.
Profits declined due to i) revenue dropped 1% to 23.5 billion baht as Thai patient revenue dropped 4% to 16.5 billion baht, accounting for 73% of hospital revenue. This is due to a 78% drop in COVID-related revenue (representing 2% of 4Q revenue, down from 9% in 3Q). Thai patient income will increase 6% qoq, while foreign patient income will continue to rise 9% qoq to Bt6.1bn (accounting for 27% of total revenue) due to strong backlog demand from the Middle East, Australia, and Australia. CLMV countries
Gross margin rose 0.4% to 37.2% in 4Q.
Increased gross margin from complex treatment of foreign patients and cost reduction projects
There is an upside to FY23F earnings forecast.
We believe that our core profit forecast of Bt12.9bn is conservative. And the revenue trend is expected to continue to be good for both Thai and foreign patients (new markets include Saudi Arabia, China and Bangladesh).
Maintain buy recommendation
We will revisit our estimates following an analyst meeting next week. At the latest closing price, TTR is an attractive 22%.
