The Thai healthcare sector has remained broadly stagnant year-to-date, significantly underperforming the SET Index by approximately 25%, according to a recent report by JPMorgan. Notably, nearly half of the positive performance on the market has been attributed to the movements in DELTA.
JPMorgan anticipated that the second quarter of 2026 will present another subdued performance for hospitals, as lingering effects from the Middle East conflict continue to impact patient flows, especially among international visitors.
However, the securities firm noted that most of the earnings risk from this conflict has been realized, with encouraging signs that travel trends, a key driver for medical tourism and expatriate healthcare, are beginning to return to normal.
Looking ahead, JPMorgan highlights a structural shift in Thai patient revenue streams, citing ongoing affordability challenges and mounting insurance sector pressures. These factors are expected to keep domestic patient growth relatively subdued compared to historical trends, and growth could remain volatile on base effects.
Within the sector, JPMorgan prefers Bumrungrad Hospital Public Company Limited (SET: BH), citing momentum factors. Meanwhile, for investors with a value perspective, Bangkok Dusit Medical Services Public Company Limited (SET: BDMS) remains JPMorgan’s pick, assigning an “Overweight” rating and a target price of THB 24.00 per share.
