KKPS upgrades private hospital stocks, says earnings have bottomed out, highlights BH, BDMS and PR9

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Kiatnakin Phatra Securities, or KKPS, has raised its investment weighting for the private hospital sector. Analyst Teerapol Udomwet said the sector's earnings already bottomed out in the second quarter of 2026 and will gradually recover in the second half of 2026, after more than a year of negative factors including stricter rules on child insurance claims and lower patient volumes from Cambodia. The sector's total revenue grew only 1-2% in the first half of 2026, but accelerated to 6-7% in July and August. On valuation, the hospital sector trades at a 2026 P/E of just 19 times, below the regional average of about 30 times, and is 30-40% cheaper than Singapore and Malaysia, which trade at 29-30 times. Dividend yields have risen to 4-5% a year from only 1-2% a year in the past. KKPS estimates that the Thai government bears 78% of the country's total public health spending, and that fiscal constraints will become clear by 2030, potentially shifting part of the government's annual burden of 450-500 billion baht to the private sector. That would represent an incremental value of more than 100 billion baht, or about 40% of the current revenue of private hospital operators listed on the stock exchange. KKPS's top picks are BH with a target price of 230 baht per share, BDMS with a target price of 23.50 baht per share, and PR9 with a target price of 24.50 baht per share. BCH and CHG also remain attractive on rising numbers of insured patients, with target prices of 13 baht per share and 2 baht per share respectively.

Impact on assets 5

Health Care▲ · 4 stocks
Bumrungrad Hospital PCL
BH
▲ PositiveCapitalrelevance

KKPS names BH a top pick with a 230 baht target price after the sector's earnings bottomed out.

Aging Population▲ · 1 stocks
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