EQUITY RESEARCH

BMHS – Results Update - 03 September 2021

CIPTADANA SEKURITAS ASIA

BUY Bundamik
Strong achievements in 1H21
TP: Rp1,630 (+42.4%)

Sector Healthcare 1H21 earnings beat expectations

Bundamedik (BMHS) reported Rp135 bn net profit in 1H21 (+755.9% YoY), due to higher
Bloomberg Ticker BMHS IJ
revenue and margin expansion across the board. 1H21 net profit was above our
Share Price Performance
expectation at 79% of our 2021F. 1H21 revenue increased by 94.2% YoY to Rp902 bn,
bolstered mainly by a spike in Covid-19 cases in June 2021. Covid cases contributed
Last price (Rp) 1,145 around 26% of total revenue in 1H21, and the company allocated 240 beds for Covid
Avg. daily T/O (Rpbn/USDmn) 82.4/5.8 patients out of 433 beds. Revenue was also above our expectation at 56% of our 2021F.
GPM and OPM in 1H21 expanded by 1,050bps YoY and 1,740bps YoY to 50.2% and 26.3%
3m 6m 12m
respectively. Furthermore, 1H21 EBITDA rose by 307.8% YoY to Rp265 bn with EBITDA
Absolute (%) 236.8 236.8 236.8 margin gaining by 1,540 bps YoY to 29.4%.
Relative to JCI (%) 235.8 235.8 235.8
Revenue growth mainly contributed by hospital segment
52w High/Low price (Rp) 1,200/424
Hospital revenue increased by 84% YoY to Rp628 bn, contributing by around 65% to
revenue growth. Inpatient days and outpatient volume increased by 72% YoY and 5% YoY
to 52 th days and 193 th patients, respectively. Inpatient admission was around 10 th
1,200 250%
patients, with ALOS jumped to 5 days from only 3 days in 1H20. BOR improved to 66% in
1,000 200%
1H21 vs. 52% in 1H20, mainly due to covid-19, as in 1H21 covid-19 BOR reached 85%.
800
150%
600
100% Strong Morula IVF performance
400
50%
On Morula IVF, revenue rose by 124% YoY to Rp261 bn in 1H21, with IFV cycles grew by
200
89% YoY to 3.1 th cycles. The revenue per cycle in 1H21 grew by 18.5% YoY to Rp85
- 0%
mn/cycle. This further translated into higher Morula EBITDA of Rp80 bn (+627% YoY), with
5-Jul

12-Jul

19-Jul

26-Jul

2-Aug

9-Aug

16-Aug

EBITDA margin expanded by 2,100 bps YoY to 31%. We see this strong performance
BMHS 1yr Rel. to JCI (RHS)
supported by pent up demand as travel restrictions made customers to do invitro locally.

New hospitals in October 2021

Outstanding shrs (mn)
Mkt. Cap (Rpbn/USDmn)
Estimated free float (%)
Major shareholders
PT Bunda Investama Indonesia
Akasya Investments Limited
EPS Consensus
Ciptadana
2021F
2022F
BMHS will open new women and child (RSIA) hospital in Denpasar with the grand opening
st
8,603 will be on 21 October 2021. The hospital will have 25 beds with possibility to be added to
around 50-75 beds at the end of 2021. The company expects that the hospital will
9,851/690
breakeven in around 4 to 5 months.
21.0
Maintain BUY with higher 2022F DCF-based TP of Rp1,630/sh
As 1H21 results above our expectations, we increased our FY21-22F earnings forecast.
57.4% We raised our FY21-22F revenue by 4.5%/4.9% to Rp1.68 tn/Rp1.97 tn respectively. We
4.9% increased our FY21-22F Bed capacity following the new hospital in Bali by 15.8%/15.7% to
467/560 beds. To reflect post-Covid normalization we tone down our FY21-22F BOR from
67%/65% to 62%/60%. We also lift up our FY21-22F OPM by 5%/4% to 24.8%/23.8%
respectively, Hence, our FY21-22F net profit are increased by 39.9%/37.1% to Rp237
bn/Rp281 bn, respectively. Therefore, we maintain our BUY rating with higher 2022 DCF-
Cons. % Diff based TP of Rp1,630/sh (was Rp1,300). We believe the post-Covid normalization in
27.6 19.9 39.0 general hospital will be offset by higher revenue per patient and higher volume in Mother
32.7 23.5 39.5
and Child hospitals.

2023F 40.4 29.7 35.9 Exhibit 1 : Financial Highlights

Year to 31 Dec 2019A 2020A 2021F 2022F 2023F
Revenue (Rpbn) 965 1,148 1,680 1,969 2,427
Operating profit (Rpbn) 133 156 417 469 575
Net profit (Rpbn) 20 89 237 281 347
EPS (Rp) 2.3 10.3 27.6 32.7 40.4
EPS growth (%) 0.0 346.3 167.4 18.6 23.4
Robert Sebastian EV/EBITDA (x) 55.2 45.8 20.3 17.5 14.1
+62 21 2557 4800 ext.760 PER (x) 495.2 110.9 41.5 35.0 28.4
sebastianrobert@ciptadana.com PBV (x) 15.9 9.9 6.9 6.0 5.2
Dividend yield (%) 0.1 0.1 0.2 0.7 0.9

http://www.ciptadana.com ROE (%) 3.2 8.9 16.7 17.2 18.3

Source : BMHS, Ciptadana Estimates

Please see analyst certification and other important disclosures at the back of this report 2
 EQUITY RESEARCH
BMHS – Results Update - 03 September 2021
CIPTADANA SEKURITAS ASIA

Exhibit 2 : Financial Highlights

Rp bn 1H21 1H20 YoY 2021F 1H/21F
Sales 902.2 464.6 94.2% 1,607 56%
COGS -449.0 -280.2 60.3%
Gross profit 453.2 184.4 145.7% 755 60%
Gross margin (%) 50.2 39.7 10.5

Operating expenses -216.1 -143.3 50.8%

Operating profit 237.0 41.1 477.0% 318 74%
Operating margin (%) 26.3 8.8 17.4

Others 27.2 11.4 138.3%

Interest income 3.8 0.9 343.8%
Interest expense -16.7 -25.1 -33.6%
Total other income
(expenses) 14.3 -12.8 -211.6%

Pre-tax profit 251.4 28.3 789.6% 293 86%

Tax -54.3 -8.0 576.7%

Profit before MI 197.0 20.2 874.0%

Minority interest -62.3 -4.4 1309.0%
Net profit 134.8 15.8 752.5% 170 79%
Net profit margin (%) 14.9 3.4 11.5
Source : BMHS, Ciptadana Estimates

Exhibit 3 : Forecast Changes

(in Rp bn) New 21F Old 21F Change New 22F Old 22F Change
Net revenue 1,680 1,607 4.5% 1,969 1,877 4.9%
COGS -857 -852 0.6% -1,014 -985 2.9%
Gross profit 823 755 9.0% 955 891 7.1%
GPM (%) 49.0 47.0 2.0 48.5 47.5 1.0
Operating profit 417 318 30.9% 469 372 26.1%
OPM (%) 24.8 19.8 5.0 23.8 19.8 4.0
EBITDA 472 390 21.2% 539 450 19.7%
EBITDA margin(%) 28.1 24.2 3.9 27.4 24.0 3.4
Net income 237 170 39.9% 281 205 37.1%
NPM (%) 14.1 10.6 3.6 14.3 10.9 3.4
Source : BMHS, Ciptadana Estimates

Please see analyst certification and other important disclosures at the back of this report 3
 EQUITY RESEARCH
BMHS – Results Update - 03 September 2021
CIPTADANA SEKURITAS ASIA

Exhibit 4- Income Statement

Year to 31 Dec (Rpbn) 2019A 2020A 2021F 2022F 2023F
Revenue 965 1,148 1,680 1,969 2,427
COGS -508 -655 -857 -1,014 -1,250
Gross profit 457 493 823 955 1,177
Oper. expenses -325 -337 -407 -486 -602
Oper. profit 133 156 417 469 575
EBITDA 185 212 472 539 652
Interest income 2 5 7 8 10
Interest expense -60 -53 -38 -11 -11
Other income (exp.) -29 37 50 55 68
Pre-tax profit 45 145 436 520 642
Income tax -14 -27 -91 -109 -135
Minority interest -11 -30 -107 -129 -160
Net profit 20 89 237 281 347

Exhibit 5 - Balance Sheet

Year to 31 Dec (Rpbn) 2019A 2020A 2021F 2022F 2023F
Cash & cash equivalent 100 625 773 547 762
Acct, receivables 62 123 113 146 172
Inventory 16 19 23 27 34
Other curr, asset 53 49 88 96 122
Total current asset 231 816 996 817 1,089
Fixed assets - net 1,124 1,249 1,361 1,449 1,554
Other non-curr.asset 23 49 50 49 50
Total asset 1,401 2,163 2,433 2,347 2,729

ST debt + curr. maturity 0 392 392 0 0

Acct, payable 75 120 135 156 194
Advances received 41 61 62 87 109
Other curr. liab 143 110 210 235 289
Long term debt 443 85 108 97 88
Other non-curr, liab, 33 345 49 54 59
Total liabilities 735 1,113 956 629 739
Shareholder equity 619 995 1,423 1,633 1,896
Minority interest 47 54 54 85 94
Total liab + SHE 1,401 2,163 2,433 2,347 2,729

Exhibit 6 - Per Share Data

(Rp) 2019A 2020A 2021F 2022F 2023F
EPS 2.3 10.3 27.6 32.7 40.4
BVPS 71.9 115.7 165.4 189.8 220.4
DPS 1.5 0.7 2.4 8.3 9.8
FCF per share -10.5 -6.7 25.8 30.0 35.5

Source : BMHS, Ciptadana Estimates

Please see analyst certification and other important disclosures at the back of this report 4
 EQUITY RESEARCH
BMHS – Results Update - 03 September 2021
CIPTADANA SEKURITAS ASIA

Exhibit 7 - Cash Flow

Year to 31 Dec (Rpbn) 2019A 2020A 2021F 2022F 2023F
Net income 20 89 237 281 347
Depreciation 52 56 56 70 77
Chg in working cap. 26 2 97 64 63
Other -14 -40 0 0 0
CF-Oper activities 84 107 390 415 487

Capital expenditure -175 -140 -168 -158 -182

Others 0 -24 0 0 0
CF-Investing activities -175 -165 -168 -158 -182

Net change in debt 0 0 0 0 0

Net change in equity 117 276 211 0 0
Dividend payment -13 -6 -20 -71 -84
Other financing -16 313 -265 -412 -6
CF-Financing activities 88 582 -74 -484 -90

Net cash flow -2 525 148 -226 215

Cash - begin of the year 103 100 625 773 547
Cash - end of the year 100 625 773 547 762

Exhibit 8 - Key Ratios

Year to 31 Dec 2019A 2020A 2021F 2022F 2023F
Growth
Revenue (%) 0.0 19.0 46.4 17.2 23.3
Operating profit (%) 0.0 18.0 166.5 12.5 22.7
Net profit (%) 0.0 346.3 167.4 18.6 23.4
Profitability Ratios
Gross margin (%) 47.4 43.0 49.0 48.5 48.5
Operating margin (%) 13.7 13.6 24.8 23.8 23.7
EBITDA margin (%) 19.1 18.5 28.1 27.4 26.9
Net margin (%) 2.1 7.7 14.1 14.3 14.3
ROA (%) 1.4 4.1 9.8 12.0 12.7
ROE (%) 3.2 8.9 16.7 17.2 18.3
Liquidity Ratios
Current ratio (x) 0.9 1.2 1.2 1.7 1.8
Quick ratio (x) 0.8 1.2 1.2 1.7 1.8
Cash conversion cycle (days) 6.8 9.0 7.7 6.9 7.4
Activity Ratio
Inventory turnover (days) 11.7 10.6 9.8 9.9 9.8
Receivable turnover (days) 23.4 29.4 25.6 24.0 23.9
Payable turnover (days) 28.2 31.0 27.7 27.0 26.4
Solvency Ratio
Interest cover (x) 3.1 4.0 12.3 46.9 59.5
Debt to equity ratio (x) 0.7 0.5 0.4 0.1 0.0
Net debt to equity (x) 0.6 Net Cash Net Cash Net Cash Net Cash

Source : BMHS, Ciptadana Estimates

Please see analyst certification and other important disclosures at the back of this report 5
 EQUITY RESEARCH
BMHS – Results Update - 03 September 2021
CIPTADANA SEKURITAS ASIA

EQUITY RESEARCH

HEAD OF RESEARCH ANALYST ANALYST

Arief Budiman Erni Marsella Siahaan, CFA Yasmin Soulisa
Strategy, Automotive, Heavy Equipment, Banking Property, Plantations
Construction, Oil & Gas and Shipping T +62 21 2557 4800 ext 919 T +62 21 2557 4800 ext 799
T +62 21 2557 4800 ext 819 E siahaanerni@ciptadana.com E soulisayasmin@ciptadana.com
E budimanarief@ciptadana.com

ECONOMIST ANALYST ANALYST

Nicko Yosafat Fahressi Fahalmesta Robert Sebastian
T +62 21 2557 4800 ext 820 Cement, Toll Road, Poultry Retail, Healthcare
E yosafatnicko@ciptadana.com T +62 21 2557 4800 ext 735 T +62 21 2557 4800 ext 760
E fahalmestafahressi@ciptadana.com E sebastianrobert@ciptadana.com

ANALYST ANALYST ANALYST

Gani Thomas Radityo Muhammad Fariz
Telco, Tower, Media Coal, Metal Mining Consumer, Cigarette
T +62 21 2557 4800 ext 734 T +62 21 2557 4800 ext 795 T +62 21 2557 4800 ext 740
E gani@ciptadana.com E radityothomas@ciptadana.com E farizmuhammad@ciptadana.com

TECHNICAL ANALYST RESEARCH ASSISTANT

Asrul Husni Sumarni
T +62 21 2557 4800 ext 780 T +62 21 2557 4800 ext 920
E husniasrul@ciptadana.com E sumarni@ciptadana.com

EQUITY SALES

DIRECTOR OF INSTITUTIONAL EQUITY SALES

Dadang Mulyana
Plaza ASIA Office Park unit 2
Jl. Jend. Sudirman Kav. 59
Jakarta - 12190
T +62 21 2557 4800 ext 838
F +62 21 2557 4900
E mulyanadadang@ciptadana.com

BRANCH OFFICES

JAKARTA - MANGGA DUA SURABAYA SURABAYA

Komplek Harco Mangga Dua Intiland Tower Surabaya
Rukan Blok C No.10 Ground Floor Suite 5 & 6
Jl. Mangga Dua Raya Jl. Panglima Sudirman 101-103
Jakarta - 10730 Surabaya - 60271
T +62 21 600 2850 T +62 31 534 3938
F +62 21 612 1049 F +62 31 534 3886

Please see analyst certification and other important disclosures at the back of this report 6
 EQUITY RESEARCH
BMHS – Results Update - 03 September 2021
CIPTADANA SEKURITAS ASIA

Analyst Certification

Each contributor to this report hereby certifies that all the views expressed accurately reflect his or her personal views about the
companies, securities and all pertinent variables. It is also certified that the views and recommendations contained in this report are not
and will not be influenced by any part or all of his or her compensation.

Disclaimer

This report does not constitute an offer to buy or sell any security/instrument, invitation to offer or recommendation to enter into any
transaction. Nor are we acting in any other capacity as a fiduciary to you. When making and investment decision, you should determine,
without reliance upon us or our affiliates, the economic risks and merits (and independently determine that you are able to assume these
risks) as well as the legal, tax and accounting characterizations and consequences of any such transaction. In this regard, by accepting this
report, you acknowledge that (a) we are not in the business of providing (and you are not relying on us for) legal, tax or accounting advice,
(b) there may be legal, tax or accounting risks associated with any transaction, (c) you should receive (and rely on) separate and qualified
legal, tax and accounting advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting
advice (and any risks associated with any transaction and our disclaimer as to these matters.

The information contained in this report is based on material we believe to be reliable; however, we do not represent that it is accurate,
current, complete, or error free. Assumptions, estimates and opinions contained in this report constitute our judgment as of the date of the
document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and
there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results. PT
CIPTADANA SEKURITAS ASIA AND ITS AFFILIATES SPECIFICALLY DISCLAIMS ALL LIABILITY FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL
OR OTHER LOSSES OR DAMAGES INCLUDING LOSS OF PROFITS INCURRED BY YOU OR ANY THIRD PARTY THAT MAY ARISE FROM ANY
RELIANCE ON THIS REPORT OR FOR THE RELIABILITY, ACCURACY, COMPLETENESS OR TIMELINESS THEREOF.

Disclaimer: This document is not intended to be an offer, or a solicitation of an offer, to buy or sell relevant securities (i.e. securities
mentioned herein or of the same issuer and options, warrants or rights to or interest in any such securities). The information and opinions
contained in this document have been compiled from or arrived at in good faith from sources believed to be reliable. No representation or
warranty, expressed or implied, is made by PT CIPTADANA SEKURITAS ASIA or any other member of the Ciptadana Capital, including any
other member of the Ciptadana Group of Companies from whom this document may be received, as to the accuracy or completeness of the
information contained herein. All opinions and estimates in this report constitute our judgment as of this date and there can be no
assurance that future results or events will be consistent with any such opinions, forecasts or estimates. The information in this document
is subject to change without notice; its accuracy is not guaranteed; and it may be incomplete or condensed.

Please see analyst certification and other important disclosures at the back of this report 7