ASL Picks 5 Top Hospital Stocks as Safe Haven amid Ukraine War and Covid Outbreak

Amid uncertainties across the globe on Russia and Ukraine war that sent energy prices to skyrocket and later a rise in inflation as an aftermath, investors are considering decreasing positions in risk assets such as stocks. However, some stocks are considered a safe haven for traders such as hospital stocks. 

Covid-19 is still ravaging the kingdom due to the highly contagious omicron variant, though, proved to have mild symptoms. The country recorded an average of more than 20,000 cases in the past seven days, but the cases are expected to spike after the Songkran Festival, a 5-day-long holiday during 13-14 April in which Thais are pouring and splashing water on each other, which could boost positive sentiment to hospital stocks from Covid-related revenue.

Mr. Suchet Suktae, Deputy Managing Director, Media Marketing Department of ASL Securities Co., Ltd., has recommended five hospital stocks with an upside to their target prices.

SALE Net Profit EPS Target Price % Upside
Sale 2019 2020 2021 2019 2020 2021 2019 2020 2021
BCH 8,952 8,980 21,404 1,134 1,229 6,846 0.46 0.49 2.75 24.75 11.49
LPH 1,581 1,801 2,500 110 142 464 0.15 0.2 0.65 6.5 8.33
RJH 1,770 1,855 3,117 395 412 1,011 1.32 1.37 3.37 33.7 2.12
CHG 5,165 5,432 11,742 705 876 4,204 0.06 0.08 0.38 4.53 11.58
SKR 3,661 3,840 6,350 242 349 1,395 0.12 0.18 0.7 16.1 11.81

*Unit in million (exclude target price and upside)

 

According to the data compiled from Refinitiv, all of the above stocks except RJH have been performing outstanding so far this year. BCH, CHG and SKR all recorded more than 11% gain this year, followed by LPH at 2.5% and RJH at -1.5%.