Land and Houses Securities (LHS) recommends a ‘Buy’ rating for Bangkok Dusit Medical Services Public Company Limited (SET: BDMS) with a target price of THB 25.00 per share. BDMS’ 1Q26 net profit is expected to decline year-on-year but show a quarter-on-quarter recovery due to the absence of special one-time items that were present in the fourth quarter of 2025.
The year-on-year decrease is mainly attributable to a high base effect during last year’s epidemic period, coupled with an absence of a significant impact from a fall in Cambodian patient numbers.
Looking ahead, LHS anticipates that BDMS’ net profit for the second quarter of 2026 will drop both year-on-year and quarter-on-quarter. This is due to the onset of the typical low season for the hospital business, as well as comparisons against a period when the decline in Cambodian patient numbers had not yet been felt.
BDMS’ share price has retreated since before the recent unrest in the Middle East. LHS believes that this issue has largely been priced in, since the company generates only 4% of its revenue from the Middle East. Should the regional situation improve, a recovery in share price could be expected, according to the brokerage.
For Com7 Public Company Limited (SET: COM7), LHS also suggests a ‘Buy’ recommendation with a target price of THB 30.25 per share. Despite concerns over the current shortage of memory components, which has pressured the overall IT hardware sector, COM7 appears relatively insulated, as this segment accounts for only 10% of total revenue.
The company has set an ambitious goal for 2026, aiming for net profit growth of at least 15%, underpinned by the expansion to 100 retail branches this year, along with the closure of underperforming outlets. Such moves are expected to enhance gross profit margins per branch by concentrating resources on the most promising locations.
Furthermore, COM7 aims to expand the consolidated UFUND portfolio to THB 7 billion in 2026, which is considered a key growth engine likely to play an increasingly prominent role in boosting overall sales for the company.
For the first quarter of 2026, LHS expects COM7’s net profit to grow year-on-year. The main drivers are projected to be: (1) strong performance in the iOS device segment, with the new iPhone 17e catering to the mid-price segment and the competitively-priced MacBook Neo, and (2) a recovery in the Android market, marked by the successful launch of the Samsung Galaxy S26 Series, which has received a highly positive market response.
