Bangkok Dusit Med Service

Bangkok Dusit Med Service (BGH)  
 

The intensifying rivalry between the major shareholders of BGH and Bumrungrad Hospital (BH) bodes well for their share prices. M&As will continue to be one of the key drivers for BGH over the next few years, while organic growth is still expected to be about 20% p.a. Despite the stellar performance of BGH’s shares recently, we believe there is further upside on the back of more M&A deals and aggressive share accumulation by major shareholders. Reiterate Outperform and target price, still based on 22x CY13 P/E. BGH is one of our top Thai market picks.