Bumrungrad Hospital

FRIDAY, MARCH 02, 2012
Bumrungrad Hospital

D-I-Y growth Outperform - maintained Share price: Bt 46.50 Target price: Bt 51.80

Bumrungrad Hospital Plc (BH)

BH changes its growth strategy from looking to acquire others to doing it itself. This reflects a lack of high-end hospital targets. It is also not keen to move outside its comfort zone yet. Thus, earnings will come from organic growth. Without such M&A deals, BH looks less exciting compared with peers, i.e. BGH. Since we had not factored in any acquisitions, we keep our forecasts. Maintain Outperform and target price, still based on 20x CY13 P/E, in line with its peers.