ThailandPHG.BK▲2
Cabinet Expands Social Security, Boosting Hospital Stocks BCH and CHG
The Cabinet meeting approved in principle a draft royal decree to extend Social Security coverage under Section 33 to three groups of employees previously exempted: those in agriculture, forestry, and animal husbandry; employees of individual employers; and employees of stall-holder employers. This is expected to add 550,000 insured persons in 2026 and 1.05 million by 2030. Krungsri Securities views this as a positive sentiment for hospital groups treating insured patients, with upside to revenue in the medium to long term. Hospitals with the highest social security revenue in the first half include BCH at 38% and CHG at 30%, while RJH has 53%, SKR 36%, VIH 26%, and PHG 40%. The firm maintains a bullish stance on the hospital group, expecting profits to have passed the trough, supported by the high season and the increase in social security treatment rates. Top picks are BDMS with a target price of 25 baht and PR9 with a target price of 24 baht. BCH, with a target price of 12 baht, is the biggest beneficiary if treatment rates are adjusted.
BCH.BK · Demand · Positive Expansion of social security coverage adds insured patients, and BCH has 38% social security revenue, making it a major beneficiary.
CHG.BK · Demand · Positive CHG has 30% social security revenue and will benefit from increased insured patients.
RJH.BK · Demand · Positive Expansion of social security coverage increases insured patients, and RJH has 53% social security revenue.
BDMS.BK · Demand · Positive Social security expansion boosts hospital demand; BDMS is a top pick with target price 25 baht.
PR9.BK · Demand · Positive PR9 is a top pick with target price 24 baht, benefiting from social security expansion.
SKR.BK · Demand · Positive Expansion of social security coverage increases insured patients, and SKR has 36% social security revenue.