Bangkok Dusit Medical Service

Bangkok Dusit Med Service Plc (BGH)

We don’t believe SiPH is a serious threat to BGH over the medium term but is just an excuse for profit taking on the stock. In fact, SiPH could help strengthen Thailand’s position as a regional medical hub. And BGH stands to benefit from this development. Recent weakness in BGH’s share price provides good entry points for investors who missed last year’s rally. We do not expect any big impact on BGH from SiPH. Thus, no change in our forecasts, Outperform rating and target price, based on 20x CY13 P/E.