Video summary

KTMS: Earnings Call (OPPDAY) Q2/2026 บมจ. เคที เมดิคอล เซอร์วิส

Main summary

Key takeaways

Business

Company overview & strategy

  • Company: KT Medical Service Public Company Limited (KTMS), established 2015
  • Purpose/positioning: Dialysis provider built around “Inspiration from Hope”, emphasizing high standards, patient safety, and a one-stop service across the dialysis supply chain.
  • Group structure (3 subsidiaries):
    • EVing Corporation Limited
    • Medical Vision Limited
    • NF Vision Limited

Integrated business model (upstream-to-downstream)

KTMS operates across the dialysis value chain, including:

  • Hemodialysis services
    • Standalone dialysis clinics
    • Hospital/ward units via affiliated hospitals
  • Design, installation, and maintenance
    • Pure water production
    • Wastewater treatment systems for dialysis
  • Dialysis fluid production & distribution
    • Concentrate products
  • Equipment/system maintenance
    • After-sales engineering support
  • Design & build services
    • Dialysis center layout/interior design to meet standards

Service scale / capabilities (as stated)

  • As of Jun 30, 2026:
    • 40 branches
    • 578 dialysis machines (“tri-machinery” referenced in subtitles)
  • Dialysis fluid production capacity: 1,130,000 gallons/month
  • Quality/certifications:
    • GMP
    • ISO 13485
    • ISO 9001:2015
  • Compliance standards mentioned:
    • Ministry of Public Health
    • Thai Society of Nephrology (dialysis center standards)

Industry context driving demand

  • CKD prevalence (Thailand, Apr 2026):
    • 17.5% of adults (~8 million people)
    • >60% are unaware they have CKD
    • Projected growth: ~7,800 more kidney patients per year (from earlier corporate intro)
  • Disease progression & treatment need:
    • Many patients progress to stage 4–5 before receiving care
    • Renal replacement therapy demand rises over time
  • Treatment mix (as stated):
    • Hemodialysis ~80%
    • Peritoneal dialysis ~17%
    • Remaining treated via kidney transplant

Financial performance & KPIs (from earnings call text)

Income statement (1H 2026 / recent periods)

  • Total revenue (1H 2026): 350.63 million baht
    • +2.27% YoY (+7.777 million baht)

Revenue by category (1H 2026):

  1. Hemodialysis services (main income): 311.27 million baht
    • +9.34% YoY (+26.58 million baht)
  2. Water system / wastewater treatment & maintenance: 32.59 million baht
    • -29.06% YoY (-13.35 million baht)
  3. Medical field services (ducting/specimen transport, etc.): 6.77 million baht
    • -44.64% YoY (-5.46 million baht)
  • SG&A (1H 2026): +21.77% YoY
    • Increase of 8.03 million baht
    • Drivers noted: financial consulting fee and pre-opening expenses
  • Net profit (text mentions “first quarter”; reported as Q1):
    • 12.999 million baht
    • -8.09 million baht YoY (profit down YoY; cost pressure referenced)

Balance sheet (as of Jun 30, 2026)

  • Assets: 868.60 million baht
  • Liabilities: 316.58 million baht
  • Shareholders’ equity: 552.02 million baht

Noted movements:

  • Assets +29.14 million baht vs end-2025, largely from:
    • Land/buildings/EQ +24.08 million (dialysis center decoration + dialysis equipment)
  • Cash +19.46 million
    • Supported by asset sales and bank loans (loans must be completed by 2026 per subtitles)
  • Trade & other receivables +18.18 million
    • Linked to more patients/treatments
  • Liabilities +20.05 million
    • Trade creditors/other creditors +29.71 million for medical equipment related to new branches
    • Long-term loans -5.03 million

Efficiency / leverage ratios (as stated)

  • ROA/ROE: “downward revision vs 2025” expected/mentioned due to net profit decrease
  • Debt-to-equity (D/E):
    • ~0.02x as of Jun 30, 2026
    • Attributed to creditor expense / working capital dynamics

Execution plan & roadmap (Strategy & Outlook)

Near-term expansion (Q3 2026)

  • Hemodialysis expansion plan:
    • Add ~3–5 branches
    • Add ~36–64 dialysis machines in Q3 2026
  • Cost control emphasis (Q&A):
    • Q1–Q2 included one-time pre-opening expenses (notably financial consulting fees)
    • Expectation: these costs “won’t be there anymore” going forward
    • Note: timing/business events in Q3–Q4 can still increase pre-opening costs

Pipeline / backlog signals (projects mentioned)

  • Water systems (pure water + wastewater treatment):
    • 12 projects already “lost/failed” (wording unclear, but indicates project outcomes)
    • Total loan amount: 9.46 million baht
    • Expected completion: Q3 2026
  • Piping/ducting specimen transport:
    • 3 projects in hand
    • Total budget: 0.47 million baht
    • Expected completion: Q3 2026

Medium-term (next 3 years)

  • Dialysis business:
    • Continue branch expansion while balancing regulatory constraints
    • KTMS Care Plus: in-house application covering “all related modules” to support future services
  • Regulatory monitoring:
    • New/stricter rules under authorities referenced; compliance intensity increasing
    • Permit duration extended (from Q&A subtitles)
  • Lab capability:
    • Target to pursue ISO 17025 Laboratory Standard certification “next month” (relative to call date)

Product / capacity initiatives

  • Dialysis fluid production:
    • Expand/augment supply via production capacity improvements
    • Mention of another supplier adding capacity, while KTMS continues distribution
  • New product development:
    • Develop additional products related to dialysis and potentially unrelated areas
  • Regional market focus:
    • Build a dialysis-related “center” (northeast mentioned)
    • Northern Thailand described as having the largest number of units/customers

ESG (business-enabling execution)

Environment

  • Carbon neutrality goal: framed as a future target
  • Measures mentioned:
    • Reduce electricity consumption using solar cells at a dialysis clinic (“Tri Clinic”)
    • Wastewater treatment: dialysis wastewater treated prior to discharge; mention of centralized treatment plants
    • Carbon accounting/reporting: annual report on emissions contributors to identify reduction actions

Social

  • Community engagement:
    • Sustainable Children’s Day events
  • Employment/economic inclusion:
    • Job/career support for mothers, including scenarios involving disabilities
  • Governance/ethics indicators mentioned:
    • CG score “4-star level” (CGR award wording)
    • 100-point AGM checklist for four consecutive years

Q&A highlights (actionable management notes)

  • Cost control for new branches (Q3: 3–5 centers):
    • Expect pre-opening cost normalization after earlier one-time fees
    • Simultaneous openings could raise costs depending on timing
  • Payback period (new branch):
    • Typically around 2–3 years
  • Branch/permit timeline risk:
    • Permit process delay: 30–60 days previously → 60–90 days currently
    • As of Q&A:
      • 11 locations total planned
      • 4 opened
      • 7 awaiting permission
  • Revenue outlook:
    • Management expects YoY revenue growth driven by new unit openings
    • Profit guidance details not disclosed due to “market securities prohibitions”
  • 2026 revenue target:
    • Approximately 800 million baht
  • Competitive stance:
    • Market described as regional/sector-specific; KTMS claims “its own market”
    • Expects expansion within appropriate segments
    • Competitive/regulatory environment includes stricter applications and higher standards

Key metrics & targets extracted

  • Branch count: 40 (as of Jun 30, 2026)
  • Dialysis machines: 578 (as of Jun 30, 2026)
  • Dialysis fluid capacity: 1,130,000 gallons/month
  • 1H 2026 revenue: 350.63m THB (+2.27% YoY)
  • 1H 2026 revenue mix:
    • Hemodialysis services: 311.27m THB (+9.34% YoY)
    • Water/wastewater: 32.59m THB (-29.06% YoY)
    • Medical ducting/specimen work: 6.77m THB (-44.64% YoY)
  • SG&A: +21.77% YoY (increase 8.03m THB) in 1H 2026
  • Net profit: 12.999m THB (referenced as “first quarter”); down 8.09m THB YoY
  • D/E: ~0.02x (Jun 30, 2026)
  • New openings (Q3 2026):
    • Branches: ~3–5
    • Machines: ~36–64
  • Payback: 2–3 years (average expectation)
  • Permit timing: expected cycle 60–90 days (up from 30–60)
  • 2026 revenue target: ~800m THB

Presenter(s) / sources

  • Mr. Suphanat Phromsiripong — Chairman; financial & investor management responsibilities
  • Ms. Kanjana Pongpattana(p)pattana — CEO (acting); presenter of business overview & strategy sections
  • KT Medical Service Public Company Limited (KTMS) — corporate/company source (earnings call content)

Original video