Hospital group pulls its socks up

BGH operates 19 hospitals in Thailand and abroad, among them the Bangkok Hospital Network, Samitivej Hospital and BNH Hospital.

Asia Plus Securities expects BGH to book net profit of Bt335 million in the second quarter of this year, an increase of 165 per cent from the same period last year but down 52 per cent from the first quarter of this year.

It thinks revenue in the second quarter will increase 16 per cent year on year because BGH has doubled the patient-to-room ratio in all its hospitals in eastern Thailand as part of its business strategy, resulting in an increase of outpatients and in-patients by 10 per cent and 20 per cent respectively.

It also forecasts that the number of patients will continue to increase in the third quarter, particularly from the Middle East, with Ramadan falling in September.

KGI Securities (Thailand) forecasts that BGH will report second-quarter earnings of Bt365 million, up 196 per cent compared with the same period last year, when the company had high expenses for improvements to achieve Joint Commission International Accreditation (JCIA), the international standard set by the US.

KGI expects BGH's gross profit margin in the second quarter to be 34 per cent, up from the same period last year thanks to increased revenue from overseas patients, expected to be up 21 per cent year on year.

Phillip Securities says BGH may post a net profit of Bt345.11 million in the second quarter, up 179.72 per cent from the same period last year, because of lower expenses. Revenue in the second quarter is forecast to increase 18 per cent year on year to Bt5.06 billion as a result of increases in in-patients and outpatients by 24 per cent and 14 per cent respectively. JCIA status has also encouraged overseas patients, the house notes.

Phillip thinks BGH will generate revenue of Bt20.74 billion this year, up 12.61 per cent from last year, and earnings of Bt1.81 billion, up a substantial 45.78 per cent.

BGH stock closed yesterday at Bt38.25 a share, up 1.32 per cent from the previous day's trading, with turnover of Bt8.7 million.