CGSI expects hospital stocks to recover in second half, highlights BH and PR9

thunhoon.com··TH·Read original
2▲2 ▼0Impact / 5
Summary · why it matters

Analysts at CGS International Securities Thailand, or CGSI, estimate that normalised profit for six hospital stocks in the second quarter of 2026 fell 2% year on year and 8% quarter on quarter, which should mark the low point for this year. They expect the hospital group to recover in the second half, though the pace of recovery will vary by company. CGSI sees BH and PR9 outperforming peers because they have a higher proportion of foreign patients, particularly from the Middle East and Myanmar, as well as pent-up demand that may return as Middle East tensions ease. BDMS should also benefit from this situation, but BDMS's mid-tier hospitals, along with CHG and RAM, may still face pressure from weak domestic demand and intensifying competition. However, BCH, CHG and RAM should benefit from a low base in the third quarter of 2026, which may help net profit avoid a year-on-year decline. CGSI continues to name BH and PR9 as top picks in the sector. The healthcare index is up 5% year to date, significantly underperforming the SET Index's 29% gain, and CGSI believes current hospital share prices already reflect concerns about weaker earnings. It therefore maintains an Overweight rating, seeing key upside drivers as an easing of Middle East tensions and a faster-than-expected recovery in medical tourism. Downside risks include higher SG&A expenses and a continued slowdown in the Thai economy.

Impact on assets 6

Health Care▲ · 5 stocks
Bumrungrad Hospital PCL
BH
▲ PositiveDemandrelevance

BH is a top pick with higher proportion of foreign patients and pent-up demand from Middle East and Myanmar.

Aging Population▲ · 1 stocks
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