Thailand’s hospital stocks, led by EKH and BCH, are gaining momentum in Monday morning trading, despite the market’s bearish trend, as traders seek safe-haven plays amid concerns over the US Federal Reserve’s rate hike.
The share price of Ekachai Medical Care Plc. (SET: EKH) rose THB0.55/share or 7.33% to THB8.05/share with a trading value of THB81 million.
The share price of Bangkok Chain Hospital Plc. (SET: BCH) rose THB0.80/share or 3.69% to THB22.50/share with a trading value of THB443 million.
The share price of Bangkok Dusit Medical Services Plc. (SET: BDMS) rose THB0.75/share or 3.00% to THB25.75/share with a trading value of THB952 million.
The share price of Bumrungrad Hospital Plc. (SET: BH) rose THB4.00/share or 2.51% to THB163.50/share with a trading value of THB332 million.
Maybank Securities (Thailand) (MST) stated that the Thai market will be overshadowed in the near term by concerns over the Federal Reserve’s aggressive rate hike. As a result, traders are looking for safe-haven plays, and equities in the healthcare sector are one of them.
Moreover, as the long holiday for the Songkran festival approaches, traders believe that COVID-19 cases may surge again, boosting positive sentiment toward the healthcare sector.
Meanwhile, Capital Nomura Securities (CNS) has given a “BUY” recommendation on BCH with a target price at ฿23.50/share, expecting the 1Q22 earnings to grow, compared to the same period of last year, and slightly higher than the previous quarter. Its growth in 1Q22 is expected to come from COVID-related revenue, which accounted for 40% of the revenue, while revenue from patients would be higher than 3Q21 and 4Q21.
Moreover, BCH has constant revenue from patients in hospitel, having an 81% occupation rate. Upside growth in 2022 should be from Covid-related services.