Thai Hospital Stocks Review: BCH vs BH

This write-up will attempt to compare BCH and BH company. Both are listed on SET Thailand.

Bangkok Chain Hospital (BCH) operates its business as a group of hospitals which consists of twelve hospitals and one polyclinics in Bangkok and upcountry to provide medical services in the level of primary-tertiary care under three hospital groups

1. World Medical Hospital targets high-income cash patients and international patients. 

2. Kasemrad International Hospital targets upper middle-income cash patients.

3. Kasemrad Hospital targets middle-income cash patients and social security patients.

4. Karunvej Hospital targets social security patients.

Its biggest shareholder is Mr. Chalerm Harnphanich (32.6%). The company is controlled by the HARNPHANICH family.

BCH	29/12/2017	28/12/2018	30/12/2019	30/12/2020
Last Price(Baht)	16.2	16.7	17.1	13.6
Market Cap.	40398.72	41645.59	42643.09	33914.97
EPS (Baht)	0.37	0.44	0.46	0.38
P/E	48.25	37.9	36.68	28.45
P/BV	8.18	7.66	7.09	5.12
Book Value per share (Baht)	1.98	2.18	2.41	2.66
Dvd. Yield(%)	1.05	1.2	1.35	1.69

Looking at the table above , the EPS hovers around 0.37 to 0.46. However, the P/E drops from 48.25 to 28.45.

Bumrungrad Hospital (BH) operates a private hospital namely Bumrungrad International hospital in Bangkok, which serves both local and international clients. The Company provides complete healthcare services for both outpatients and inpatients and also invests in the related health care services businesses.

Its biggest shareholder is Bangkok Dusit Medical Services (23%).

BH	29/12/2017	28/12/2018	30/12/2019	30/12/2020
Last Price(Baht)	189	187.5	147	120
Market Cap.	137722.19	136640.88	107139.68	95350.28
EPS (Baht)	5.41	5.7	5.14	1.33
P/E	35.88	33.36	27.99	49.81
P/BV	8.86	7.84	5.62	5.18
Book Value per share (Baht)	21.34	23.91	26.18	23.15
Dvd. Yield(%)	1.32	1.44	1.97	2.59

Looking at the table above, its EPS is dropping sharply from 5.14 to 1.33 due to Covid19. At the same time, its P/E ratio increase from 27.99 to 49.81. 

The Thai healthcare sector is on the path to recovery. The patients numbers is forecast to increase following the expected Covid19 containment in 2021. BCH shows its earnings resilience as it generates income from Social Security Office (37% of revenues in 2020). BCH's P/E ratio relative to BH is 28.45/49.81 = 0.57. BCH is undervalued relative to BH.