VIBHAVADI Medical Centre Plc will expand its investments overseas by focusing on Asean countries, including Myanmar, Cambodia, and Laos, by holding at least a 25-per-cent stake in local hospitals, the company’s chairman of the executive board and managing director, Chaisith Viriyamettakul, said recently.
He added that the company is negotiating with local hospitals in Myanmar, Laos and Cambodia to hold at least a 25-per-cent stake in local hospitals in the three countries. It sees that as a way to expand its foreign customers and widen its network in the region.
“Our business strategy will reduce investments to build new hospitals as that takes time to generate income. But we will expand by investing in existing hospitals at home and overseas,” he said.
Currently, Vibhavadi Medical Centre Plc holds a 13-per-cent stake in Sikarin Plc, the operator of Sikarin Hospital. The company also hold a 13.07-per-cent stake in Ramkhamhaeng Hospital Plc.
This investment policy will generate quicker returns to the group rather than invest in developing new hospitals on its own as the cost of building new hospitals is higher than investing in existing hospitals, he said.
In the first nine months of last year, Vibhavadi Medical Center Plc recorded total revenue Bt5.07 billion and net profit of Bt611.39 million; Sikarin Plc recorded total revenue Bt3.47 billion and net profit Bt242.42 million in the first nine months of 2018 while Ramkhamhaeng Hospital Plc recorded total revenue of Bt3.93 billion and net profit of Bt1.32 billion in the first nine months of 2018.