Kasikorn Securities maintains its "Buy" rating on Rajthanee Hospital Public Company Limited, or RJH, and has raised its mid-2027 target price to 17.70 baht from 17.20 baht after revising up its profit forecasts. It expects normalized profit in the third quarter of 2026 to grow a strong 63% year on year to 134 million baht, driven by revenue growth from the Social Security Office, or SSO, and margin expansion, even as revenue from cash-paying patients weakens. Management is maintaining its revenue growth target of more than 10% amid weak economic conditions and purchasing power. The research team values the stock using a DCF method with a WACC of 7.7%, based on 293 million shares outstanding, excluding treasury shares, reflecting a PER of 12.2 times in 2026 and 12.7 times in 2027, versus RJH's nine-year historical average of 19.7 times and one standard deviation below the average at 9.5 times. It also implies a dividend yield of 5.1% in 2026 and 2027. If the SSO does not raise its service rates, the DCF-derived value would fall 5% to 16.90 baht from 17.70 baht. RJH trades at a PER of only 10 to 11 times in 2026 and 2027, the lowest in the sector, with a dividend yield of 5.9%. Downside risks include weaker-than-expected purchasing power in Phra Nakhon Si Ayutthaya province, no increase in SSO service rates, and negative regulatory changes.
Rajthanee Hospital Public Company LimitedKasikorn Securities maintains Buy and raises RJH's target price to 17.70 baht after lifting profit forecasts, with Q3 2026 normalized profit seen up 63% YoY.
