Back to Previous Page
Summary of 9M/2024 results and outlook of Thai Nguyen International General Hospital JSC (TNH VN)
Net revenue was VND323bn (-10.6% y/y), impacted by a temporary 16.8% decline in Q3/2024 revenue due to Typhoon Yagi. It is the most severe storm to hit northern Vietnam in three decades, disrupted patient traffic of TNH’s hospitals in Thai Nguyen province.
TNH raised staff salaries to match public hospital wage hikes (+30% from July 2024). Furthermore, the higher staffing costs were driven by recruitment for the Bac Giang GH ahead of its operation approval, preparing for growth while temporarily reducing gross margin to 30.2% (from 46.4%). As a result, net profit declined 43.3% y/y to VND62.7bn.
Industry Trends and Strategic Position
The private hospital sector offers long-term potential, underlined by major foreign investments in recent years (e.g., CVC Capital Partners, Thomson Medical Group, and Warburg Pincus). The 2024 Healthcare Law, which reduces out-of-pocket costs and expands public insurance coverage, enhances private hospitals’ appeal by narrowing price disparities with public hospitals while offering higher quality and reduced waiting times.
Outlook
For long-term: TNH’s expansion into underserved regions underpins its growth strategy. We project the 2026–2029 period to be driven by increasing patient volumes from 4 hospital contributions, and a favorable regulatory environment. Bac Giang GH and Lang Son GH are expected to turn profitable by 2026 and 2028, respectively.
Others: On 27 Dec 2024, TNH will hold an EGM to elect Mr. Romeo Fernandez Lledo as an independent Board member. He is a former Group President Director of PT Siloam International Hospitals Tbk (Indonesia’s largest private hospital chain with 41 hospitals). With over 40 years of executive experience in Indonesia and the Philippines, he is expected to enhance TNH’s management capacity in advancing a high-quality hospital chain.
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: https://tnh.com.vn/
