Comprehensive Analysis of Leading Hospital Operators in Thailand

Date: December 5, 2024

Broker: Maybank Securities (Thailand) PCL

Praram 9 Hospital (PR9): A Rising Star in Healthcare

Praram 9 Hospital (PR9), a leading hospital operator in Bangkok’s bustling central business district, is making waves with its value-for-money services and strategic international market penetration. The hospital, which boasts 204 beds, is particularly renowned for its expertise in complex medical treatments like kidney transplants. In fact, it performed the highest number of kidney transplants among private hospitals in Thailand in 2023.

PR9’s strategic pricing, set 5-15% lower than competitors, has been a key factor in attracting both domestic and international patients. The hospital has successfully tapped into the Middle East market, driving a 42% year-on-year rise in foreign patient revenue in the third quarter of 2024. Such robust growth is expected to continue, with a projected 20% CAGR in international patient revenue from FY2024 to FY2026.

Maybank Securities has initiated a “BUY” recommendation for PR9, with a target price of THB32. Despite a 45% rise in stock price since August 2024, PR9’s valuation remains attractive at 24x FY2025 P/E.

Bangkok Dusit Medical Services (BDMS): A Pioneer in Medical Excellence

Bangkok Dusit Medical Services (BDMS) stands as a giant in the healthcare sector, renowned for its expansive network and comprehensive medical services. In 2023, BDMS generated 27% of its revenue from international patients, with 4% coming from the Middle East.

The company is projected to achieve an 8% revenue CAGR from FY2024 to FY2026. Despite a modest 1% revenue growth in FY2024, BDMS’s earnings are expected to grow by 13%, showcasing its ability to maintain profitability even with slow revenue growth.

BDMS has received a “BUY” recommendation, with a strong historical P/E band trading above 30x, reflecting its solid market position and growth potential.

Bumrungrad Hospital (BH): A Trusted Name in Global Healthcare

Bumrungrad Hospital (BH) is synonymous with premium healthcare services, particularly for international patients. In 2023, a staggering 67% of its revenue was from international patients, with 27% from the Middle East, underscoring its stronghold in global medical tourism.

While BH’s revenue growth in FY2024 is predicted to be just 1%, its earnings are set to rise by 10%, supported by its high-margin international patient base. The hospital’s strategic focus on high-quality care continues to drive its reputation and financial performance.

Maybank Securities recommends a “BUY” for BH, given its robust market presence and consistent growth in earnings.

Bangkok Chain Hospital (BCH): Steady Growth in a Competitive Market

Bangkok Chain Hospital (BCH) has carved a niche for itself by focusing on both domestic and international patients. In FY2023, international patients contributed 17% to its revenue, with 9% from the Middle East.

Despite a projected 2% decline in earnings for FY2024, BCH is expected to achieve a 10% CAGR in revenue from FY2024 to FY2026, driven by strategic expansions and service diversification.

While currently holding a “HOLD” recommendation, BCH’s long-term growth prospects remain promising, making it a stock to watch in the coming years.

Chularat Hospital (CHG): Focusing on Value and Expansion

Chularat Hospital (CHG) is known for its affordable healthcare services, catering to a wide range of patients. In FY2023, 4% of its revenue was derived from international patients, reflecting its growing focus on expanding its service reach.

CHG is projected to see an 11% revenue growth in FY2024, supported by its strategic focus on expanding facilities and enhancing service offerings. With a 12% CAGR in earnings from FY2024 to FY2026, CHG is poised for steady growth.

Maybank Securities has issued a “BUY” recommendation for CHG, emphasizing its strategic positioning and growth potential in the healthcare sector.

Conclusion

The healthcare sector in Thailand is witnessing significant growth, with leading hospital operators like Praram 9 Hospital, Bangkok Dusit Medical Services, and Bumrungrad Hospital at the forefront. Each institution is leveraging strategic market penetration, particularly in international arenas, to drive revenue and earnings growth. With positive recommendations from Maybank Securities, these hospitals present promising investment opportunities for those looking to tap into the thriving healthcare market in Thailand.