Bangkok Dusit Medical Service

MONDAY, NOVEMBER 28, 2011
Bangkok Dusit Medical Service

Big is beautiful Outperform (maintained) Share price: Bt73.50; target price: Bt86.00 Hospitals

Bangkok Dusit Med Service Plc (BGH)
 

Efficiency comes with size and we are convinced BGH will be more successful the bigger it gets. With its stronger financial muscle, the company is in a great position to acquire more hospitals and this could be a powerful catalyst for its share price. As the largest private hospital group in Thailand by far, BGH has several advantages over rivals, which in turn would allow it to add more hospitals into the group. We are excited by its bright prospects and reiterate our OUTPERFORM call with our target price at 20x CY13 P/E.