Krungsri Securities (KSS) wrote that Praram 9 Hospital Public Company Limited (SET: PR9) reported a 3% year-on-year and 2% quarter-on-quarter increase in healthcare service revenue. This growth was driven by higher average treatment fees for both inpatient (up 11% year-on-year and 9% quarter-on-quarter) and outpatient services (up 3% year-on-year, stable quarter-on-quarter).
This compensated for a decrease in the number of inpatients (down 3% year-on-year and 4% quarter-on-quarter) and outpatients (down 4% year-on-year, stable quarter-on-quarter). Revenue from international patients grew significantly by 11% year-on-year and 14% quarter-on-quarter, with notable increases from CLMV countries (up 32% year-on-year) and the Middle East (up 8% year-on-year). In contrast, revenue from Thai patients remained stable year-on-year and declined by 2% quarter-on-quarter due to seasonal factors.
For July, healthcare service revenue recorded mid-single-digit growth, supported by both increased patient numbers and higher average treatment charges. International patients continued to show strong momentum, particularly from the Middle East and Myanmar, while Thai patient growth benefited from insurance groups and seasonal utilization trends.
The company maintains its target for mid-single-digit revenue growth for the year, in line with the 3% year-on-year growth seen in the first half of 2026. PR9 will continue to focus on its value-driven pricing strategy, expand its capacity for complex specialized treatments, and improve service quality. The company also plans to broaden its international market reach, targeting countries such as Indonesia and Australia.
Management indicated a potential upward revision of revenue targets should third-quarter figures exceed expectations, especially as international patient revenue remains a key growth driver. The company expects the EBITDA margin this year to at least match the 2025 level, which stood at 23%.
Capital expenditure for 2026 is expected to fall below the THB 650 million target, as investments are being restricted to essential projects and medical equipment costs have been effectively negotiated.
Krungsri maintains a slightly positive view following the recent meeting update, highlighting: improved momentum in July revenue due to increased patient numbers and average fees—particularly among high-margin international patients; a consistent revenue growth projection of 3% year-on-year; and expectations that the EBITDA margin will not fall below last year’s level, supported by enhanced cost management and a higher proportion of international patients.
As a result, the brokerage recommends a ‘Buy’ rating for PR9 with a target price of THB 24.00 per share, determined using the DCF method with a WACC of 8.3%. PR9 has been identified as a laggard stock compared to its potential and is expected to unlock value from improvements in cost efficiency, growth in complex case patients, and the potential for increased dividend payout, with an expected average annual yield of 4%.
Moreover, Krungsri noted that the current share price trades at a 2027 forward PE below -1.0 standard deviation, indicating a re-rating opportunity as earnings recover.
