Krungsri Securities (KSS) maintains a bullish outlook on Chularat Hospital Public Company Limited (SET: CHG), recommending a “Buy” rating with a 2026 target price of 2.20 baht. The forecast reflects expectations of robust net profit and improved margins driven by revenue recovery and operational efficiencies.
CHG is expected to post a net profit of 265 million baht for 4Q25, marking a 189% year-on-year surge, though slightly down 3% quarter-on-quarter. The growth is fueled by an anticipated 11% year-on-year rise in revenue, with both the cash business and social security segments performing strongly.
The gross margin is projected at 29.6%, in line with the previous quarter, supported by increased service utilization and effective cost management. However, the anticipated tax benefit from BOI incentives has been postponed to 1Q26.
Should 4Q25 results align with forecasts, CHG is set to report a 2025 net profit of 970 million baht, stable from 2024. The outlook for 2026 is more positive, with net profit expected to grow 7% year-on-year to 1,028 million baht, on the back of a 6% recovery in revenue and continued improvements in operational efficiency.
Mae Sot Hospital is also expected to turn profitable within the year, while the company’s gross and EBITDA margins are forecasted to reach 29% and 22.4%, respectively, underpinned by economies of scale and disciplined cost controls.
CHG is trading at a forward 2026 PE of 17x, presenting a potentially attractive entry point. Key catalysts include upward adjustments to medical service fees for the social security segment and the expectation of no adverse impact from gastric surgery cases in 2026.
Notably, the company is scheduled to announce its financial statements on February 27, 2026.
