Ms. Ajaya Intaraprasong, Assistant Vice President and Head of Investor Relations at Bangkok Dusit Medical Services Public Company Limited (SET: BDMS), disclosed that the company sees strong operational momentum for the third quarter of 2026, with a clear recovery in July, following modest 1% revenue growth in the hospital segment for the first half of the year.
July alone saw revenue jump by 8%, fueled by both local and international patients, with hospital revenue from upcountry facilities surging by 10%. Notably, income from the insurance segment rose substantially—from 2% in the first half to 11% in July—now accounting for nearly 40% of BDMS’ total revenue, with plans to expand this to 40-45% in the future.
Occupancy rates, which had fallen to 55% during the low season in 2Q26, rebounded to 65% in July, positively impacting profit margins and EBITDA for the second half of the year. The insurance segment, particularly, showed notable growth, as BDMS leverages the BDMS Utilization Review system to manage insured patients, focusing on complex medical cases requiring specialized care.
Internationally, growth was robust among expatriates from the United States and patients from Myanmar, with revenues up 19% and 21%, respectively. The Middle Eastern market also showed signs of recovery, with booking numbers rising from 2,000 in April to 3,500 in August 2026. European patient revenue improved by 11%, particularly in tourist destinations such as Pattaya and Phuket.
BDMS continues to expand its hospital network to meet increasing demand, opening smaller hospitals in industrial areas and specialized clinics in larger facilities. The company is also diversifying beyond hospitals through its non-hospital business group, including pharmaceutical production and health retail, targeting revenue growth from THB 4.3 billion in 2026 to THB 8 billion by 2030 with a 13% CAGR.
Strategically, BDMS aims to increase revenue from preventive health services from 12% to 20% within the next decade, while introducing technologies like speech-to-text to enhance doctor-patient communication. For 2026, BDMS targets an EBITDA margin of 24%, with capital expenditure expected at 8-10% of total revenue over the next two to three years.
TISCO Securities maintains a ‘Buy’ recommendation on BDMS, raising profit forecasts for 2026-2028 by 7-9% and increasing the target price to THB 24.50 per share, reflecting improved business fundamentals in the second half of 2026.
Revenue is expected to be supported by sustained international patient growth and a rebound in local demand, with the resurgence of COVID-19 in August providing additional uplift, particularly for the cash patient segment, which constitutes over 70% of hospital business revenue. EBITDA margins are projected to improve to 24.2%, aligning with management’s targets.
