On Wednesday at 3:23 PM (Bangkok time), the share price of Bumrungrad Hospital Public Company Limited (SET: BH) soared by 7.26% or THB 11.00 to THB 162.50, with a trading value of THB 1.93 billion.
Chularat Hospital Public Company Limited (SET: CHG) jumped by 2.31% or THB 0.04 to THB 1.77, with a trading value of THB 28.03 million.
Bangkok Dusit Medical Services Public Company Limited (SET: BDMS) gained 1.41% or THB 0.30 to THB 21.60, with a trading value of THB 1.83 billion.
Bangkok Chain Hospital Public Company Limited (SET: BCH) rose by 1.44% or THB 0.20 to THB 14.10, with a trading value of THB 78.97 million.
Krungsri Securities (KSS) noted that the Thai hospital stocks gained momentum, testing the 75-day Exponential Moving Average (EMA) as the healthcare service sector shows consistent signs of recovery. Additional catalysts are present, and the shares continue to lag behind other service categories, suggesting further upside potential.
The primary driver remains the steady rebound in service activity, with foreign tourist arrivals increasing for three consecutive weeks. The analyst expects July 2025 to mark a monthly record for Middle Eastern arrivals, in line with yearly trends. KSS suggests investors monitor data reports slated to be released late this week and early next week.
Additionally, the positive sentiment is also supported by a two-day surge in oil prices, which may boost purchasing power during the peak season in the third quarter for patients from the Middle East.
KSS pointed out that the Thai hospital stocks continue to lag among service-related stocks, with a year-to-date return of -18.6% (compared to the SET Index’s -11.9% and hotels’ -13.7%). The sector trades at deep value at 19.4 times, with forward P/E at more than one standard deviation.
Furthermore, the market is also seeing fund inflows into emerging markets, and Thailand remains a target destination. Large hospitals such as BDMS and BH are expected to lead the recovery.
On fundamentals, KSS recommends a ‘BUY’ rating on BDMS, with a target price of THB 33 per share, and on BH, with a target price of THB 200 per share. BDMS is also named as the top-pick stock by the analyst.
Liberator Securities added that the surge in BH share prices was driven by expectations for a stronger second-quarter performance compared to the first, due to the return of international patients—especially from the Middle East, which is a key medical tourism market.
While the issues with Kuwaiti patients continue, the impact is seen as minimal, representing just 2% of international patient revenue. The company also raised service fees earlier this year, which offset revenue softness during Ramadan and the absence of patients from Kuwait and the UAE.
Overall, operations are recovering in line with expectations and have growth prospects for the second half of the year. Net profit in 2025 is forecast at approximately THB 7.9 billion, up from THB 7.77 billion in 2024.