Bangkok Dusit Medical Services (BGH.BK/BGH TB)*: No sign of fatigue (Short report)

BGH’s recent increase of its stake in Bumrungrad Hospital (BH.BK/BH TB)’s* to 20.28% (from 14.22%) and the announcement of planned capital raising in the future leads us to believe an M&A deal is not far off, which will enhance the company’s long-term earnings growth profile. We revised up earnings by 4%, starting from 2012, to incorporate the increased stake in BH. We reiterate our Outperform rating on BGH with a new sum-of-the-parts (SOTP) target price of Bt103.00 (from Bt91.00). We are more bullish on the long-term outlook due to earnings surprise from a potential M&A deal.
http://research.kgieworld.co.th/recom.nsf/0/EA6DA9A59B86DFEC472579C6000441A9/$file/Short+Report_BGH_2012_03_19_e_th.pdf

 

 

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