Cash patient income decreased 5% qoq to 2.1 billion baht. Covid-19 income was negative 72 million baht in 4Q compared to negative 19 million baht in 3Q, but SSO income increased 3% to 1 billion baht due to extra profits. 44 million baht (consisting of 54 million baht in risk income and reduce high expense group income by 10 million baht in December 2023 (reduce AdjRW from 12,000 baht to 10,000 baht). Gross profit margin decreased 3% qoq to 30.9%, excluding special items. Gross profit margin will be 31.6% (down only 2.3%).
Return to normal growth
We expect earnings to grow 14% yoy to 1.8 billion baht in FY24F, supported by (i) Thai cash patient income will increase from more branches and services (genomics, labs, health centers, plastic surgery, care elderly people, etc.); (ii) the share of expatriate income will increase supported by new markets (Libya, China, Saudi Arabia) and new services; (iii) SSO income will increase, led by (a) increased SSO registrations (>50,000) and Recognize full year income for lump sum income (to 1,808 baht/person/year from 1,640 baht) (b) 515 program (c) individual health care and illness prevention program; (iv) Better operations at KH Vientiane (net loss of 168 million baht in FY23 vs. loss of 114 million baht in FY22), KH Prachinburi, KH Aranyaprathet.
Maintain BUY recommendation, target price 23 baht
BCH had a net cash position of 619 million baht in 4Q23 and operations should return to normal growth. The company announced final DPS of 0.25 baht, yield of 1.2% XD on May 2.
2024-03-04 07:03:00
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