JPMorgan says Thai hospital stocks may be positioned for a broader earnings recovery in the second half of 2026, after a weak year-to-date performance versus the wider market. The broker sees room for investors to reassess the sector as patient flows improve and dividend expectations may prove too conservative.
SET Health has trailed the SET Index by 21% so far this year, while Bangkok Dusit Medical Services Public Company Limited (SET: BDMS) has lagged Bumrungrad International Hospital Public Company Limited (SET: BH) by 24%, according to JPMorgan.
The broker believes the market is not fully pricing in the sector’s earnings recovery potential. It expects support from a rebound in Middle East patient volumes and a reduced revenue impact linked to Cambodia.
BH has outperformed operationally over the past two years, helped by stronger execution and market share gains. However, JPMorgan expects the growth gap between BH and BDMS to narrow as UAE revenue becomes more stable and travel-related disruption eases.
JPMorgan also highlights the sector’s dividend appeal, estimating a yield of around 5%. Its dividend per share forecasts are 10–27% above consensus, suggesting potential for positive DPS surprises.
The broker remains constructive on Thai hospitals but now prefers BDMS over BH.
