SET-listed Thonburi Healthcare Group Plc plans to spend 1.29 billion baht during 2019-2020 to expand its hospital facility in Bangkok, in part to sustain its growth.
Dr Tanatip Suppradit, the group’s vice-president, said 860 million baht will be allocated to build an eight-storey outpatient department building on 14,900 square metres, as well as a 10-storey car park on 8,820 sq m at Thonburi hospital.
The remaining 435 million baht will be used to build a three-storey Inpatient Department (IPD) building on 12,000 sq m at Thonburi 2 hospital. Construction of all facilities is scheduled to be complete next year.
"We heavily invested the past two years, about 6-7 billion baht, and believe 2019 will be a good year for us. Our revenue is projected to increase by 20% this year," Dr Tanatip said.
The growth this year will be driven by improvements in its hospital businesses, including the opening of a new hospital called Thonburi Toongsong in Nakhon Si Thammarat province in July. This hospital is 85% completed and should open initially with 50 beds, though 200 beds is listed as the final capacity.
"There is an opportunity here. There is no private hospital available in Toongsong apart from 30 clinics in the surrounding area," he said.
Moreover, the company plans to grow its revenue from the opening of a new hospital in Bangkok's Bamrung Muang district for special treatment, focusing on foreign patients.
Thonburi Healthcare expects to open about 50 beds in Thonburi Burana in the second half this year, also opening Jin Wellness Institute in the first half of this year.
In addition, the company plans to transfer 200 rooms at Jin Wellbeing County, its first residential unit for the ageing, worth about 1 billion baht in Rangsit this year.
For overseas expansion, Dr Tanatip said the group has started to service IPD patients, with 23 beds at Ar Yu international hospital in Myanmar since Feb 7 this year.
"We are looking for new business partnerships in Asean countries that have huge room for growth with a high bottom line," he said.
Nalin Vanasin, the group’s director, said she is not worried about the government’s recently introduced price control measures for medical supplies and healthcare expenses because Thonburi Hospital Group is not the market leader in price.
"Our price is about 30% cheaper than other players in the market. So far the government’s price control policy is not an issue. If the measure impacts our business, we would adjust to a certain extent to sustain growth," Ms Nalin said.