BGH profits to see big rise

BGH's net profit will reach Bt2.01 billion, a 62-per-cent rise year on year, compared to the healthcare industry's annual growth average of 30 per cent projected for this year, the securities house said.

"The company will book more profit from increasing the number of shares it holds in Ramkhamhaeng Hospital from 19 per cent to 38.24 per cent," the securities house added.

Ayudhya also forecast that BGH's sales revenue would rise 15.6 per cent year on year to Bt21.31 billion, thanks in large part to overseas expansion, particularly its contracts with the Qatar and Oman governments to send patients to the group's hospitals and the opening of a new hospital in Cambodia last month.

Ayudhya maintained its "buy" recommendation with a target price of Bt48.

Phillip Securities said the growing number of foreign patients would give a big boost to net-profit growth, and revised BGH's 2008 net-profit forecast to Bt1.81 billion, up by 45.78 per cent on year.

BGH is confident the Joint Commission certification from the US for six of its hospitals would help raise its foreign patient ratio from 41 per cent last year to 50 per cent this year.

KGI Securities revised BGH's 2008 net profit forecast by 36.8 per cent to Bt2 billion, citing the increasing number of foreign patients and the expansion of its hospitals overseas. KGI placed a "buy" recommendation on the stock at Bt48 per share.