Shares of Bumrungrad Hospital Plc (BH) are trading below 97 baht per share this week, the lowest price for the stock since 2014.
At the end of trading on Thursday, BH shares stood at 97 baht per share, up 1.75 baht or +1.84 per cent with a transaction value of 338.8 million baht. The price has seen a 4 per cent decline in the previous two days before the slight leap on Thursday.
Bumrungrad hospital is one of the country’s leading high-end healthcare operators and the top destination for foreign medical tourists with 580 licensed inpatient beds and the capacity for more than 5,500 outpatient visitors per day.
As a result of the coronavirus pandemic and travel bans in the second quarter, the hospital reported a drop of 43 per cent in its revenues and 94 per cent of its profit year-on-year.
BH’s second-quarter net profit was reported at only 44 million baht compared to the last year’s 725 million over the same time period.
Analysts said that the unfavorable market conditions have brought BH share down while the sentiment toward the company could only be improved by a recovery in its international segment.
Artirat Charukitpipat, Bumrungrad’s Chief Executive Officer, told Thai Enquirer that the falling price of BH reflects the sentiment from foreign investors which has dampened on the back of the global pandemic and the lack of a vaccine.
Handling travel restrictions
The impact of the airport closure and airlines canceling their flights into Thailand has taken a major toll on the hospital’s operation.
In 2019, 66.2 per cent of patients in the second quarter were from abroad while this year the international segment has been reduced to just 48.1 per cent.
“Since the pandemic began, we have lost a significant number of international patients,” Artirat said.
“The hospital has adjusted the business plan to alleviate the downturns, for instance, offering promotions to Thais and ex-pats, implementing telemedicine technology for overseas patients.”
Bumrungrad has successfully sold 4,553 buy-1-get-1 check-ups in the last quarter as part of its promotional campaign.
The challenging second-half
Following the news that the Center for COVID-19 Situation Administration (CCSA) will gradually reopen the country’s borders, there is more positive sentiment for BH as more medical tourists will be able to enter the country.
“So far, the volume of domestic patients in the third quarter has increased by 30 per cent compared to the second quarter,” said Artirat. “We are looking forward to optimizing hospital’s infrastructures and systems to support increasing patients.”
There are around 400 backlogged patients waiting to be approved to enter the country and more than 1200 patients interested in coming to Thailand to receive treatment.