Profits continue to grow in 2023 (6 February 2023)

Profits are increasing and increasing in 2022…

Net profit jumped 222% yoy to Bt429mn in 9M22 due to i) increased number of beds to 304 from 204 and utilization rate increased to 67% from 58% ii) increased prices (reduced spreads against competitors) down from 15% to 5 % -10%) iii) Foreign patient revenue increased to Bt391mn, which is higher than pre-pandemic levels (Bt336mn in 9M19) We expect 4Q22 earnings to be flat qoq. About 150 million baht will bring profit in FY22F to 576 million baht. , up from 249 million baht in FY21.

…and will continue to grow in 2023

PR9 targets revenue growth of 10-15% this year and gross profit margin to stabilize at 14-15% to Bt630-660mn this year, supported by i) foreign patient revenue share to 15% of Total revenue (from 13). % last year and a long-term target of 20%) The main customer is Myanmar. (Number of patients in May-Dec. 2022 higher than full FY19 cases) Cambodia, Laos, China and Middle East ii) Expansion of kidney disease centers (Received >80 kidney transplants in the last year) Opened new specialist centre. (Sleep center in 1Q-2Q23) and introducing new technology. (scarless thyroidectomy) iii) more non-therapeutic income (examinations, LASIK, wellness, dermatology) iv) patients with more complex diseases (IVF, heart, cancer, thyroid, diabetes), Housing (market expansion to Laos), LASIK ) which will increase income / bill (current income from OPD 4,500 baht / bill and IPD 30,000-40,000 baht / bill)

strong balance sheet

PR9 has net cash of 1.2 billion baht at the end of 3Q22 (no loans).

Valuation is not high

At the latest closing price of Bt20, the stock trades on a modest PER of 27x 2022 and 25x this year, up from an average of 47x in the pre-COVID period.

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