Summary of the 2021 9M results of Thai Nguyen International General Hospital JSC (TNH VN)
9M/2021 results: Highlights
- Net revenue grew by 31.7% y/y to VND308bn thanks to (1) the total number of hospital visits reaching 247,407 (+33.0% y/y) including outpatients (222,868 visits, +36.0% y/y) and inpatients (24,539 visits, +18.0% y/y), (2) a 15.1% y/y rise in the average service fees since February 2021.
- The gross margin increased to 52.4% from 46.1% in 9M/2020 owing to (1) a 15.1% increase in the average service fees, (2) a higher proportion of COVID testing services (quick test and PCR test) which have low CAPEX investment and higher profitability. As a result of robust sales growth and greater gross margin, operating profit increased by 46.8% y/y. However, interest expenses soared by 84.1% y/y due to a new loan for Thai Nguyen International Hospital’s expansion and additional working capital, resulting in a lower net profit growth of 36.8% y/y to reach VND110bn, with a net margin of 35.6% (+13bps y/y).
- Financial health: 1% of total assets are cash and deposits. Leveraging was moderate with D/E and D/A ratios of 0.6x and 0.4x, respectively.
- EGM updates: 25% of the 2020 stock dividend of will be executed from December 2021 to January 2022. Following that, in Q1/2022, current shareholders will have a 2:1 right to purchase new shares at VND16,000/share.
Outlook 2021-2022
- For 2021: we maintain our forecast that net revenue and net profit will increase strongly by 45.0% y/y and 44.2% y/y to VND487bn and VND158bn respectively thanks to (1) a 11.7% growth in the total number of patients, (2) a 15.1% rise in the average service fees, (3) achieving economies of scale with Thai Nguyen International Hospital (TIGH) and Yen Binh General Hospital (YBGH).
- For 2022: TNH will finish the TIGH’s 50-bed expansion in H1/2022, YBGH’s 150-bed expansion, and a new Maternity Hospital in Q4/2022. Overall, we project total consolidated net revenue to rise by 19.5% y/y to VND582bn, and a net profit of VND183bn (+15.5% y/y).
Company ratings and target prices are accessible for clients only.
If you are interested in getting full access to our paid Primary Research Materials feel free to get in touch with us at your convenience.
Our team is actively covering 50 companies in the listed Vietnamese equity space for our clients.
Featured image credit: cafef.vn