Krungsri stays bullish on hospitals, picks BDMS and PR9 as top stocks

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Krungsri Securities Public Company Limited said that cooperation between insurers and hospitals, evolving into a Healthcare Ecosystem model, will help expand the patient base and increase continuity of service use, especially among Thai patients. Meanwhile, domestic insurance revenue for BDMS, BH, PR9 and BCH grew at an average CAGR of 12%, 16%, 12% and 7% respectively during 2023-25, reflecting the growing role of third-party payors. In the first half of 2026, domestic insurance revenue at BDMS, BH and PR9 still grew 2%, 1% and 8% year on year respectively, while BCH fell 6% year on year. The share of domestic insurance revenue, ranked from largest to smallest, was BDMS at 31%, PR9 at 26%, BCH at 24% and BH at 14%. The research team views this as a structurally positive factor for medium- to long-term revenue. It expects group earnings to pass their trough in the second quarter of 2026 and enter the high season in the second half of 2026. It therefore maintains a bullish view on the sector, selecting BDMS with a target price of 25 baht and PR9 with a target price of 24 baht as top picks, and also likes BCH with a target price of 12 baht among social security hospitals on upside if SSO treatment fees are raised.

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