Thai Stock: Consistently Great Profitability At Chularat Hospital

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Background

Chularat Hospital Public Company Limited operates seven clinics and four hospitals in Thailand. CHG has about 600 inpatient beds, though generates slightly more income from its outpatient services.

It also engages in related businesses, such as production and distribution of drugs and medical equipment, and provision of research and laboratory services.

Business Description

CHG operates in two segments, Hospital Operations and Other Businesses. It also distributes medical instruments and dietary supplements. Patients are categorized as outpatients unless they are hospitalized for more than 24 hours, which are then called inpatients.

The company has seven main hospitals with 599 beds and seven clinics operating under the Chularat brand. They provide medical treatment and nursing care to patients and managed-care patients under different government programs. It has expertise in hand and microsurgery – as it treats many accident victims from the eastern Bangkok and east of Bangkok industrial zones – neonatal intensive care and stroke treatment.

CHG has eight subsidiaries, most of which are responsible for operation of different hospitals and/or clinics. Thai Amdon Co., Ltd. is the exception as it serves as an import and distribution business for medical equipment.

New hospital with a budget of USD18m, Ruampat Chachoengsao, has been under construction since 2016 and is expected to fully operate in 1H19. It’s going to add 100 beds and 20 operating rooms to CHG’s capacity.

Leadership

Kriengsak Plussind was appointed as Chairman of CHG in 2004, and also has served the same position at Ilicon Company Limited since 1976. He is also on the board of directors in numerous other companies. He studied a Mini MBA in Health from Chulalongkorn University, Thailand and Director Accreditation Program (DAP) Class 2011 Thai Institute of Directors.