Analysts Prefer SSO-less Hospital as Thai Cabinet Aims to Cut Social Contributions

Thanachart Securities reported that the Thai Ministries of Finance and Labour are preparing a proposal to lower social contributions from 5% to 3%, which will be presented to the cabinet for review this month.

The analyst identified potential risks, especially for hospitals like BCH and CHG, reliant on social security reimbursements, while giving a ‘BUY’ recommendation for hospital stocks like BH and BDMS, which demonstrate strong profit margins and have no revenue dependence on social securities or UCEPCOVID revenue recognition.

In the past month, the share price of Chularat Hospital Public Company Limited (SET: CHG) fell nearly 16%. Bangkok Chain Hospital Public Company Limited (SET: BCH) dropped 12%. Bangkok Dusit Medical Services Public Company Limited (SET: BDMS) dipped 1.83%, while Bumrungrad Hospital Public Company Limited (SET: BH) recorded 2% gain.