The Q2/2017 performance of the hospital group shows that the highest revenue belongs to Bangkok Dusit Medical Services (BDMS) at 38.2 billion baht. The highest net profit margin is held by Ramkhamhaeng Hospital (RAM) at 27.4%, with the highest earnings per share at 50.32 baht. Meanwhile, Bumrungrad Hospital (BH) achieved the best return on equity (ROE) in the group at 26.1% and return on assets (ROA) at 21.4%. The capital projects of this hospital group are not a concern, as most have a debt-to-equity (D/E) ratio not exceeding 2 times.


TerraBKK Research summarizes the figures for Q2 2017 performance of the “hospital” group consisting of 19 companies as follows:

Revenue

    • The average revenue for Q2 2017 ranged from 680 to 2,500 million baht.
    • The only company with revenue exceeding 10 billion baht is Bangkok Dusit Medical Services (BDMS) at 38.2 billion baht.
    • The highest revenue growth compared to the same period last year is led by the top three: Sikarin Hospital (SKR) at 36.2%, Sriwijai Hospital (VIH) at 17.7%, and Bangkok Dusit Medical Services (BDMS) at 13.1%.
    • The largest revenue decline compared to the same period last year is seen in Ekachai Hospital (AHC) at -3.9%, Vattanacare (NEW) at -3.3%, and Bumrungrad Hospital (BH) at -1.5%.


Net Profit Margin (NPM)

   • The average net profit margin for Q2 2017 ranged from 5.5% to 14.9%.
   • The top three highest net profit margins are Ramkhamhaeng Hospital (RAM) at 27.4%, Bumrungrad Hospital (BH) at 21.9%, and Rajthanee Hospital (RJH) at 15.7%.
   • The largest increase in net profit margin compared to the same period last year is Vibhavadi Hospital (VIBHA) at 11.4% (Q2/2017) from 8.8% (Q2/2016).
   • The largest decrease in net profit margin compared to the same period last year is Vattanacare (NEW) at -2.5% (Q2/2017) from 1.02% (Q2/2016).


Earnings per Share (EPS)

   • The highest earnings per share is Ramkhamhaeng Hospital (RAM) at 50.32 baht per share (Q2/2017) from 43 baht per share (Q2/2016).


Return on Equity (ROE)

   • The average ROE for Q2 2017 ranged from 10% to 17.5%.
   • The top three highest ROE are Bumrungrad Hospital (BH) at 26.1%, Nonthavej Hospital (NTV) at 20.6%, and Rajthanee Hospital (RJH) at 20.4%, reflecting good management efficiency in providing returns to shareholders.
   • The highest growth in ROE compared to the same period last year is Sikarin Hospital (SKR) at 7.03% (Q2/2017) from 6.06% (Q2/2016).
   • The largest decline in ROE compared to the same period last year is Vattanacare (NEW) at 1.84% (Q2/2017) from 4.73% (Q2/2016).

Return on Assets (ROA)

   • The average ROA for Q2 2017 ranged from 7.8% to 15.5%.
   • The top three highest ROA are Bumrungrad Hospital (BH) at 21.4%, Nonthavej Hospital (NTV) at 21.3%, and Samitivej Hospital (SVH) at 18.5%, reflecting the company's efficiency in utilizing assets for investment returns.
   • The highest growth in ROA compared to the same period last year is Sikarin Hospital (SKR) at 6.8% (Q2/2017) from 5.9% (Q2/2016).
   • The largest decline in ROA compared to the same period last year is Vattanacare (NEW) at 2.6% (Q2/2017) from 5.13% (Q2/2016).

Debt to Equity (D/E)

• The average D/E for Q2 2017 ranged from 0.3 to 1 times, reflecting good risk management in capital structure, with no company having a D/E ratio exceeding 2 times.


P/E Ratio (as of September 15, 2017)

• The average P/E for the real estate development group ranged from 30 to 45 times.
• The unusually high P/E is Vattanacare (NEW) at 84.3 times, indicating that its stock price is very high compared to other stocks in the group ---TerraBKK


Article by: TerraBKK Investment Tips
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