Bumrungrad Hospital PCL

CGS International (Thailand) or CGSI maintains a "Buy" recommendation on Bumrungrad Hospital (BH) with a target price of 212 baht, after raising its net profit forecasts for 2026-2027 by 4% and for 2028 by 2%. It expects net profit for Q3/2026 to be 2,083 million baht, up 2% year-on-year and 10% quarter-on-quarter, bringing 9-month 2026 profit to 5,763 million baht, or 77% of the full-year estimate. The research house sees revenue from international patients still growing 7.1% in Q2/2026, led by patients from Myanmar, the Middle East, and the US. Although the number of international patients declined 6%, revenue from complex treatments is expected to rise 14% for international patients and 5% for Thai patients. Meanwhile, GPM in Q3/2026 is expected to increase to 52.5% from 52.0% in the previous quarter, and the company can control SG&A expenses to 15.8% of revenue. CGSI also raised its dividend payout assumption to 100% for 2026-2028, implying a dividend yield of about 5%. It expects BH to have EBITDA of around 10-11 billion baht per year, sufficient to support annual dividend payments of about 7.7-8.1 billion baht. Risks to monitor include potential escalation of Middle East tensions and increased competition in the international patient market. Positive factors include pent-up demand from Middle Eastern patients that may be stronger than expected and the reopening of the Thai-Cambodian border checkpoint.

Third-quarter net profit of Thai listed companies is expected to expand from a year earlier but slow from the previous quarter, with the main support coming from higher energy prices, petrochemical spreads, mobile and internet service revenue, electronics demand, as well as new power generation capacity and profit from GULF's overseas power plant business. Meanwhile, higher jet fuel costs are pressuring the airline group, and narrowing interest margins are pressuring the banking group. Groups whose core profit is expected to grow from a year earlier are led by energy, petrochemicals and construction materials, supported by average Brent crude prices in July to August rising 28% from a year earlier and Singapore GRM refining margins rising 434% from a year earlier. The electronics group is supported by strong AI and data center demand, with DELTA Taiwan's power electronics sales in July growing 59% from a year earlier and 17% from the previous quarter. KCE expects PCB revenue may rise 17 to 19% from the previous quarter thanks to product price increases effective from July 1, which should lift average selling prices by about 9 to 10%. HANA is seeing IC capacity utilization recover, and AI-related products are expected to begin commercial production from the third quarter. The communications group is supported by mobile and internet service revenue. The hospital group expects revenue to return to growth both from a year earlier and from the previous month in July, supported by Thai and Middle Eastern patients, with flights from the Persian Gulf estimated to have recovered to pre-war levels since early July. The retail group saw same-store sales rise 1% from a year earlier in July, led by IT product retailers, with COM7 expecting total sales to grow 15% from a year earlier and ADVICE growing 17% from a year earlier. CPALL expects same-store sales to expand 0.5% from a year earlier on average in July to August, while Makro was flat and Lotus contracted 5% from a year earlier. The tourism group saw revenue per available room in July at AWC rise 26% from a year earlier, CENTEL rise 8% from a year earlier, ERW rise about 5% from a year earlier, and MINT rise 4% from a year earlier. Groups whose core profit is expected to decline from a year earlier are led by transport, pressured by higher jet fuel costs, banking, pressured by persistently narrowing interest margins, and meat, pressured by lower meat prices, with average pork prices in July falling 14% from a year earlier and chicken prices falling 1% from a year earlier. Meanwhile, the pet food export group expects sales to still grow 10% from a year earlier and 7% from the previous quarter in July. Analysts recommend being selective in stocks whose third-quarter earnings trends are still expected to grow strongly, have not seen sharp earnings downgrades over the past three months, and have clear positive factors supporting recovery. These include KCE in electronics, CBG in beverages, which expects domestic energy drink sales to grow 10% from a year earlier and Myanmar sales to grow 70% from a year earlier in the third quarter of 2026, ITC in pet food exports, BH and BDMS in hospitals, AOT and CENTEL in tourism and airports, and GPSC in power plants, which recognizes full-quarter profit from GHECO-One and Glow IPP power plants.

Analysts at CGS International Securities Thailand, or CGSI, estimate that normalised profit for six hospital stocks in the second quarter of 2026 fell 2% year on year and 8% quarter on quarter, which should mark the low point for this year. They expect the hospital group to recover in the second half, though the pace of recovery will vary by company. CGSI sees BH and PR9 outperforming peers because they have a higher proportion of foreign patients, particularly from the Middle East and Myanmar, as well as pent-up demand that may return as Middle East tensions ease. BDMS should also benefit from this situation, but BDMS's mid-tier hospitals, along with CHG and RAM, may still face pressure from weak domestic demand and intensifying competition. However, BCH, CHG and RAM should benefit from a low base in the third quarter of 2026, which may help net profit avoid a year-on-year decline. CGSI continues to name BH and PR9 as top picks in the sector. The healthcare index is up 5% year to date, significantly underperforming the SET Index's 29% gain, and CGSI believes current hospital share prices already reflect concerns about weaker earnings. It therefore maintains an Overweight rating, seeing key upside drivers as an easing of Middle East tensions and a faster-than-expected recovery in medical tourism. Downside risks include higher SG&A expenses and a continued slowdown in the Thai economy.

Shares of Bumrungrad Hospital Public Company Limited, or BH, rose 3% after brokers forecast third-quarter 2026 profit growth and higher full-year 2026 earnings from the previous year, while recommending a buy with a target price of 232 baht. The share price this morning stood at 206.00 baht, up 6.00 baht or 3.00%, with trading value of 545.30 million baht. ASL Securities expects third-quarter 2026 revenue of 6.708 billion baht, up 3% from the same period last year. Hospital operating costs are seen at 47.5%, up from 47.0% a year earlier, due to rising physician fees and product costs, with net profit forecast at 2.063 billion baht, growing 1.4% year on year. For full-year 2026, revenue is projected at 25.879 billion baht, up 2.6%, and net profit at 7.654 billion baht, up 1.3%. The opening of Bumrungrad International Hospital Phuket is scheduled for a first-phase soft launch in the third quarter of 2027. The trend is expected to pressure short-term costs mainly from depreciation, but the gradual service rollout and centralized management should help control medical supply and administrative costs, which are variable costs, and support the creation of consistent standards.

Several brokers issued research notes on Bumrungrad Hospital Public Company Limited, or BH, after attending an analyst meeting, forecasting that third-quarter 2026 performance will grow on recovering international patients and expansion into the new market of Iraq. Asia Plus Securities raised its 2026 net profit estimate to 7.81 billion baht from 7.714 billion baht and lifted its 2027 fair value to 225 baht per share, maintaining a buy rating. Krungsri Securities recommends buying with a target price of 225 baht, despite a neutral view on the revenue direction. KGI Securities raised its 2026 profit forecast by 6.6 percent to 7.87 billion baht and increased its 2027 target price to 228 baht from 218 baht. UOB Kay Hian maintained a buy rating with a target price of 236 baht and named BH a top pick in the hospital sector.

CGS International Thailand, or CGSI, has raised its year-end 2026 target for the SET Index to 1,690 points from 1,630 points, while lifting its market earnings per share estimate for this year by 8 percent. The move follows a 10 percent year-on-year and 14 percent quarter-on-quarter increase in combined net profit for the Thai listed companies it covers in the second quarter of 2026, led by the energy and petrochemical sectors. Excluding those two sectors, however, combined net profit fell 25 percent from a year earlier and 6 percent from the previous quarter. The research team recommends overweight positions in healthcare, tourism, consumer products, and industrial estates. It also updated its top picks, removing ERW and CRC and adding CPALL and PTT. The latest list consists of BH, PR9, THAI, PTT, CPALL, CPN, AMATA, WHA, GULF, TRUE, TFG, KBANK, MTC, and TIDLOR.

Bualuang Securities assesses that hospital stocks have already passed their low point of the year in the second quarter and will recover in the third quarter, driven by seasonal factors and pent-up demand from the Middle East. Combined core profit of the four hospital stocks under coverage was 5.7 billion baht, down 4% year-on-year and 10% quarter-on-quarter, on combined revenue of 37 billion baht, up 1% year-on-year but down 3% quarter-on-quarter. The quarterly decline came from softer Thai patient volumes due to seasonality and economic conditions, while the fly-in business continued to grow. Average gross margin was 36.5%, down 110 basis points year-on-year and 90 basis points quarter-on-quarter, due to higher depreciation from capacity expansion. BH and PR9 still posted profit growth from fly-in demand, while BDMS was most affected by fewer Cambodian patients. BCH beat estimates as social security revenue helped offset weaker general patient volumes. For the third quarter, the picture improves as flights between the Middle East and Bangkok return to pre-conflict levels, combined with the high season for both Thai and fly-in patients. July data already show revenue increasing both year-on-year and month-on-month. On financial positions, BH stands out most, with second-quarter ROE rising to 27.6% from 21.9% in the first quarter and 25.9% in the second quarter last year, along with the highest net cash position in the group. BDMS is the only company with net debt, but its debt-to-equity ratio is only 0.1 times. Bualuang maintains an overweight stance on the hospital sector relative to the market, with BH as the top pick on the recovery of Middle Eastern patients and a strong financial position across the board. For BDMS, Bualuang keeps a buy rating with a target price of 23 baht for end-2027, viewing the second quarter as likely the low point. July revenue trends have started to return to year-on-year growth for both Thai and foreign customers, leading to expectations that third-quarter core profit will increase both year-on-year and quarter-on-quarter. Third-quarter support comes from the disease outbreak season, no high base from Cambodian customers as in the previous year, and Myanmar revenue still growing strongly at 42% year-on-year in the second quarter, continuing from 43% year-on-year in the fourth quarter last year and the first quarter this year. Third-quarter gross margin is expected to rise to 35-37% from a higher proportion of more complex cases. Net debt-to-equity is only 0.1 times, and second-quarter receivable turnover rose to 43 times, up 7% year-on-year. Inventory turnover was 16 times, above the group average of 12 times. The stock trades at a price-to-earnings ratio of about 18 times, below the long-term average by 1.5 standard deviations. First-half profit accounted for 45% of the full-year estimate, close to the normal proportion, so full-year profit is still seen as in line with estimates. For BH, Bualuang keeps a buy rating with a target price of 220 baht and still selects it as the standout hospital stock. The third quarter has two main supports at the same time: the recovery of Middle Eastern patients travelling for treatment and the high season for Thai patients. Higher treatment intensity per case supports both revenue and gross margin, even though foreign patient numbers have not fully recovered. Third-quarter core profit is expected to grow faster year-on-year than in the second quarter and to increase quarter-on-quarter on seasonality. Preliminary July data indicate that Thai patients have started to increase from rainy-season illnesses, while flight routes from the Middle East have returned to pre-conflict levels, although patient numbers still lag. The impact of Cambodian patients suspending services after the border incident on 24 July 2025 will not affect third-quarter figures. On financial position, second-quarter ROE was 27.6%, up from 21.9% in the first quarter and 25.9% in the second quarter last year, clearly higher than other stocks in the group. The company has a net cash position and receivable turnover rose to 84 times from 59 times in the second quarter last year. The stock trades at a 2027 price-to-earnings ratio of about 18 times, while the target price of 220 baht is based on a price-to-earnings ratio of 21 times, or one standard deviation below the 10-year average of 30 times. Dividends are an additional upside, with the first-half interim dividend of 4 baht per share higher than expected. If a special dividend is paid at the same proportion as in 2025, dividend yield would rise to 6.0%, compared with a base case of 2.6%. However, the main point of the investment idea still places more weight on a return to profit growth than on dividends as a supplement.

Asia Plus Securities expects hospital group profit to recover in the third quarter of 2026, growing both quarter-on-quarter and year-on-year, after second-quarter revenue fell 2.9% from the previous quarter but still rose 1.0% from a year earlier, supported by Middle Eastern patients returning after Ramadan and the easing of the Iran situation. Meanwhile, the group's normalized profit fell 5.0% from a year earlier and 12.0% from the previous quarter, led by Bangkok Dusit Medical Services falling 9% and Bangkok Chain Hospital falling 6%, while Bumrungrad Hospital and Praram 9 Hospital posted profit growth of 1.7% and 1.3% respectively. The research team maintained a market-weight rating on the hospital group, selected Bumrungrad Hospital and Praram 9 Hospital as top picks, with fair values of 220.00 baht and 22.00 baht respectively, while Bangkok Dusit Medical Services is a tactical top pick with a maintained buy recommendation and a fair value of 23.00 baht.

Asia Plus Securities' research department said second-quarter 2026 profits of Thai listed companies were the highest on record, beating expectations by about 13%, but still lagging US tech stocks, where NASDAQ beat expectations by 53%, causing some funds to rotate into tech stocks and keeping Thai stocks under pressure and hard to move. It recommends stocks with supportive factors, namely PTT, GULF, GPSC, BGRIM, and stocks expected to post standout third-quarter profits, namely CPF, BDMS, BH, PR9, and KCE. Data from 594 companies, representing 98% of market capitalisation, show second-quarter 2026 net profit surged to 386 billion baht, growing 10.8% quarter-on-quarter and 12.5% year-on-year, with the energy sector contributing as much as one-third of profits. Commodity-linked stocks such as energy, petrochemicals, food, and agriculture accounted for as much as 44% of total market profit, compared with the normal level of about 30%. First-half profit already accounted for more than 60% of full-year estimates, making third- and fourth-quarter profit targets of only about 19% per quarter, or roughly 228 billion baht, not difficult to achieve. There is also a chance that full-year EPS estimates will be revised upward at year-end, adding upside to the SET Index.

Asia Plus Securities' research team has issued an analysis of hospital stocks BDMS and BH after their second-quarter 2026 earnings announcements, expecting profits at both companies to recover clearly in the second half of the year. BDMS reported normalized profit of 3.176 billion baht in the second quarter of 2026, down 21.7 percent quarter-on-quarter and 9.0 percent year-on-year, due to higher drug and medical supply costs as well as depreciation from the opening of the new Bangkok Hospital Hua Hin building and the bed expansion at Bangkok Hospital Surat. The research team maintained its 2026 normalized profit forecast at 15.918 billion baht, down 1.7 percent year-on-year, and kept a buy recommendation with a target price of 23.00 baht. BH reported net profit of 1.89 billion baht in the second quarter of 2026, up 1.7 percent year-on-year and 5.5 percent quarter-on-quarter, supported by revenue from international patients rising 7.1 percent year-on-year, and announced an interim dividend of 4.00 baht per share, representing a dividend yield of 2 percent, with the stock going ex-dividend on August 28. The research team maintained its 2026 net profit forecast at 7.714 billion baht, growth of 2.7 percent year-on-year, and upgraded its recommendation to buy from speculative, with a 2027 target price of 220 baht.

BH shares rose 3.95% to 197.50 baht after reporting second-quarter 2026 net profit of 1.89 billion baht, up 1.7% from a year earlier and 5.5% from the previous quarter, in line with research expectations. The result was supported by revenue from international patients, which increased 7.1% year-on-year, led by Myanmar, the Middle East, and the United States, while Thai patient revenue declined 2.2%. The company announced an interim dividend of 4.00 baht per share, with the ex-dividend date set for August 28. Asia Plus Securities upgraded its recommendation to buy from speculative, with a 2027 target price of 220.00 baht per share, citing expectations for stronger second-half performance driven by a recovery in international patients and the high season for Thai patients.

Kingsford Securities expects the SET index to trade sideways today within a support level of 1,600 points and resistance at 1,620 to 1,630 points, awaiting the outcome of negotiations to open the Strait of Hormuz and supported by strong earnings from large listed companies. The brokerage recommends gradually accumulating Value and Defensive Play stocks, naming 10 securities: KBANK, KTB, GULF, GPSC, ADVANC, TRUE, CPALL, BH, BDMS, and BEM. For ADVICE, it recommends speculative buying with an IAA Consensus target price of 7.80 baht, expecting second-quarter 2026 profit to rise both quarter-on-quarter and year-on-year, driven by improving gross margins as IT product prices gradually increase, while robust sales of smartphones and other goods help offset the shortage of iPhones. The market forecasts 2026–2027 profit at 401 million baht, up 50% from the previous year, and 413 million baht, up 3% from the previous year. For AP, it recommends buying with an IAA Consensus target price of 9.74 baht, benefiting from the reduction of transfer and mortgage fees to 0.01% for residential properties priced up to 7 million baht, extended until 30 June 2027. It expects second-quarter 2026 pre-sales to grow both year-on-year and quarter-on-quarter, supported by low-rise projects and a low base last year due to the earthquake. The market forecasts 2026 net profit at 4.62 billion baht, up 7% from the previous year, and 2027 net profit at 4.92 billion baht, up 6% from the previous year, with a forward PE of 5.6 times, PBV of 0.5 times, and dividend yield of 6.5%.

Techno Medical Public Company Limited, or TM, expects to receive AACI accreditation by September 2026, which will help expand its foreign customer base and attract referral cases from leading hospitals such as Bumrungrad Hospital, Samitivej Hospital, and the Bangkok Hospital group. Currently, the Wellness business has an occupancy rate of around 70 percent from a total of 65 beds, and there are plans to develop a Residence project for the elderly on land in the Saphan Sung area near the Orange Line electric train station, with a proposal expected to be submitted to the company's board by the end of this year. In addition, TM is adjusting its strategy to increase the proportion of OEM production from China to reduce costs and boost margins.

Krungsri Securities views Thai equities as having positive signals from Thailand becoming an AI investment hub and the Federal Reserve likely holding interest rates steady, setting an index target of 1,600 to 1,680 points and selecting eight standout stocks in banking, power plants, tourism, and other sectors. Mr. Korrapat Vorachet, Assistant Managing Director and Head of Research at Krungsri Securities, said Thailand is being seen as a new strategic location for AI infrastructure investment in the region, with advantages from sufficient reserve power generation capacity, competitive land costs, and utilities ready to support data centers. Meanwhile, the Fed may choose to patiently hold interest rates rather than hike aggressively amid fragile signals in the US labor market, which would be positive for Asian stock markets and value-market segments. The research team maintains its index target at 1,600 to 1,680 points, expecting the market to gradually recover and have a chance to revise earnings estimates upward after the second-quarter results pass. Recommended standout stocks include KBANK and KTB in the banking group, where prices are still below book value; GULF and GPSC in the power plant group to support electricity demand from data centers; PTT and SCC, which benefit from a new wave of investment; and AOT and BH in the tourism and healthcare group, helped by lower oil cost pressures and the return of Chinese tourists.

Bumrungrad Hospital has disclosed that each year tens of thousands of patients die from heart failure in Thailand, yet the public health system can carry out only around 30 heart transplants annually. The main bottleneck is not a shortage of donors, but rather that patient screening and referral processes remain inadequate. Dr. Patchara Ongcharit, a specialist in cardiothoracic surgery, noted that currently only four to five teaching hospitals provide heart transplant services, and Bumrungrad Hospital is the sole private hospital with the full capability, achieving a 30-day post-operative survival rate of 100 percent across seven cases to date. Meanwhile, Police Lieutenant Colonel Dr. Sakonwatchara Montriwet, a specialist in cardiology, spoke about the ECMELLA innovation, which combines ECMO, an artificial heart-lung support machine, with the Impella miniature heart pump to sustain patients in critical shock while they await a donor heart, effectively buying vital time to prevent other organ failure.

Asia Plus Securities says the Ministry of Public Health aims to push Thailand to become the regional hub for Advanced Therapy Medicinal Products, or ATMP Hub, within four years by upgrading ATMP industry standards covering cell production, storage, and transport, while requiring operators to meet GMP standards and obtain Cell Bank certification. The research team views this as directly positive for MEDEZE as the leader in Thailand's cell banking business, with over 50% market share and the country's first legally registered cell bank, reflecting readiness to expand into the ATMP business with leading medical institutions. If the ATMP Sandbox project makes concrete progress, it will be a key driver for the development of the anti-aging and regenerative medicine business, which has high growth potential. Currently, the company is awaiting registration of products for knee osteoarthritis and facial skin degeneration, and expects to start recognizing commercial revenue from 2027 onwards. Meanwhile, the growth of the ATMP industry provides structural support for the longevity business in the long term. BDMS stands out for expanding preventive health and anti-aging medicine services through WellEra and BDMS Wellness Clinic, covering anti-aging and regenerative medicine. Although the current revenue share is not high, it is a high-margin business that attracts high-purchasing-power customers. BH has a strength in VitalLife, which has been in the longevity business for over 20 years and is recognized by the premium medical tourism segment, thus also likely to benefit from the megatrend of anti-aging and health restoration medicine in the long term. The research team picks MEDEZE as the top stock for this theme due to the clearest growth potential in the ATMP business within the group, with a preliminary fair value of 8.00 baht based on historical P/E plus two standard deviations at 40.29 times, implying 22% upside, and recommends buying. BDMS and BH have opportunities to benefit from the long-term growth of the longevity and regenerative medicine business, with DCF-based fair values of 23.00 baht and 200.00 baht, respectively.

Globlex Securities expects the Thai stock index to move in a range of 1,600 to 1,650 points this week, with a downward trend in line with global markets. The main pressure comes from attacks on oil tankers in the Red Sea that have driven crude oil prices sharply higher, stoking inflation concerns and expectations of rising interest rates. Assistant Managing Director Vilasinee Boonmasungsong said the Houthi attacks on two Saudi Arabian oil tankers caused crude prices to spike and markets to worry about accelerating inflation again. On the domestic positive side, investment promotion applications in the first half of 2026 totaled more than 1.47 trillion baht, up 37 percent. In the United States, initial jobless claims fell to 187,000, and a nuclear cooperation agreement was reached with Saudi Arabia. However, negative factors remain from US trade policy, which imposes import tariffs on Thailand at a maximum rate of 12.5 percent, and the global interest rate outlook, with the FedWatch tool indicating an 83 percent chance of a Fed rate hike in September. Meanwhile, the VIX Index surged 12.38 percent to close at 18.70, reflecting market fragility. On investment strategy, Research Director Watcharin Jongyanyong recommends a defensive stance in five fundamentally strong stocks: ADVANC, AOT, BH, GULF, and KBANK.

Asia Plus Securities says the stock market is facing pressure from three major wars: the Middle East conflict, the trade war, and the technology war. Its research team scored 20 industry groups on which would survive or benefit. The winning groups, with scores between 0 and +2, are energy, insurance, healthcare, petrochemicals, and retail. Recommended stocks in these groups include TOP, BCP, BLA, TLI, BDMS, BH, PTTGC, IVL, CPALL, and COM7. The standout stocks of the day, chosen from groups with non-negative scores, are DELTA, BDMS, and CPALL.

Krungsri Securities disclosed that the latest progress on the Thailand Individual Savings Account, or TISA, scheme is currently in the final stage of study and condition revision, with clarity expected by September. Meanwhile, the proposal to raise the investment ceiling for tax deductions is still under review for suitability. The research team assesses that the scheme will be positive for the Thai stock market due to long-term fund inflows, with every 10 billion baht of new money supporting the index by 25 to 30 points. This will benefit large-cap stocks in investment themes such as GULF, GPSC, KBANK, KTB, ADVANC, AMATA, and WHA, as well as service-sector stocks like BDMS, BH, and AOT. Additionally, the approval of the five-year national fisheries management plan will help reduce trade barrier risks and enhance ESG credibility, positively impacting seafood and food export stocks such as TU and ITC.

Phillip Securities Thailand expects BH's earnings trend to improve in the second half of the year, supported by a faster-than-expected recovery in foreign patients, especially Middle Eastern patients gradually returning after the end of the fasting season and easing travel restrictions. Hospital revenue in the third quarter of 2026 is forecast at 6.089 billion baht, down 1.9 percent from the previous quarter but up 1.4 percent from a year earlier. Revenue from foreign patients is expected to rise 1.9 percent year-on-year, while revenue from Thai patients is flat at 0.5 percent year-on-year, resulting in a foreign-to-Thai patient revenue mix of 65 to 35. Core profit is forecast at 1.868 billion baht, up 4.6 percent from the previous quarter and 0.7 percent from a year earlier. Although gross margin is expected to soften to 51.5 percent from 52.5 percent in the second quarter of 2025, the recovery of high-margin Middle Eastern patients and seasonal factors will support earnings for the rest of the year. The analyst maintains a buy rating on BH and raises the end-2026 target price to 200.00 baht per share from 190.00 baht.

Bumrungrad Hospital revealed that sports injury incidence in the Asia-Pacific region is rising by 18 percent per year, contrasting with the surging popularity of exercise. Thailand has the highest rate of disability-adjusted life years lost to injury in ASEAN, according to The Lancet data from 2025. Dr. Atirat Jarukitpipat, Chief Executive Officer, stated that people with active lifestyles are increasingly taking up serious sports but lack in-depth assessment, leading to chronic injuries, especially to knees and shoulders among gym-goers, who tend not to stop playing even when injured. Dr. Vichan Kanchanathawale, Head of the Sports Medicine and Joint Center, expects the rising Hyrox trend to be the next tsunami destroying joints and hearts, as it is an extreme sport requiring very high fitness and strength. Doctors recommend assessing body structure, movement systems, and cardiac fitness before competing to prevent severe injuries that may require surgery and incur high costs, while emphasizing the concept of preserving natural joints and cellular-level recovery to enable a safe and sustainable return to sports.

CGS International Securities Thailand analyzed that the opening of 16 premium clinics in public hospitals and specialized institutions to serve middle-income and foreign patients will increase pressure on private hospitals, especially mid-tier ones focusing on self-pay and health insurance patients. This will intensify price competition and marketing expenses, as well as lead to poaching of medical personnel and greater bargaining power for insurers. The research team cut earnings estimates and target prices for BCH, CHG, and RAM, downgrading BCH and CHG to sell while maintaining a hold rating on RAM. It highlighted BH and PR9 as top picks in the premium hospital segment, benefiting from medical tourism and having a high proportion of revenue from foreign patients.

Bumrungrad Hospital Public Company Limited, or BH, has revealed its second-half plan to upgrade the Sports Medicine and Joint Center under the concept of "Move Better, Play Stronger, Live Fuller" to capture the rapidly growing Active Lifestyle trend in the Asia-Pacific region. Dr. Artirat Charukitpipat, Chief Executive Officer, stated that key highlights include the launch of Bumrungrad International Hospital Phuket under the Hub-and-Spoke Model, the opening of a Specialized Hospital on Sukhumvit Soi 1, and the enhancement of the Horizon Cancer Center to provide comprehensive cancer care. The company will also continue investing in digital transformation and AI, adhering to the principle that technology is a tool to empower personnel, not to replace them. Bumrungrad's vision is to shift its role from a hospital that waits to treat illness to a Lifetime Health Partner focused on proactive healthcare, spanning prevention, advanced treatment, and holistic wellness for a long, quality life. The Sports Medicine and Joint Center has recently been upgraded to provide holistic care for exercise enthusiasts, from readiness assessment and prevention to targeted treatment, rehabilitation, and performance enhancement. Statistics show that over 3.5 million sports injuries occur annually in the United States, while the Asia-Pacific region sees an increasing incidence of up to 18% per year. Bumrungrad Hospital has also been recognized by Newsweek magazine as the best specialized hospital in Asia-Pacific for orthopedics for the fourth consecutive year, ranking 31st out of 75 in the region and first in Thailand. It was also named a leading private hospital and clinic in Asia for knee surgery and knee replacement, hip surgery and hip replacement, and shoulder surgery for the second consecutive year, ranking first out of 100 in the Asia region.

Yuanta Securities Thailand says crude oil prices have started to soften after Iran signalled that diplomatic channels with the United States through intermediaries remain open, easing concerns over the Middle East conflict and providing a short-term positive sentiment boost for anti-commodity stocks. Stocks expected to benefit from this trend include TASCO, AOT, MINT, BA, MTC, BH, and BDMS.

Yuanta Securities expects second-quarter 2026 earnings for the hospital group to soften both quarter-on-quarter and year-on-year, as Thai patient revenue remains flat amid the economic climate, while foreign patient flows from certain markets continue to be affected by the Middle East situation and the Cambodian border issue. However, three companies are set to post year-on-year profit growth: PR9, BH, and CHG. PR9 is supported by a recovery in foreign patients, particularly from Myanmar, along with complex-disease cases that boost revenue per head, while drug and medical supply costs ease. BH is expected to deliver low single-digit profit growth as foreign patient numbers begin to recover, and CHG benefits from a low base and social security revenue. For the second half of 2026, group profits are forecast to rebound both half-on-half and compared with the second half of last year, driven by the high season as Middle Eastern and CLMV patients gradually return. Meanwhile, the Cambodian border issue will have lapped its one-year anniversary in June, lowering the base for comparison and opening room for recovery. In addition, previously deferred treatment demand and a rise in complex-disease cases will support revenue per head and profitability margins. On the policy front, the government is studying a shift in the civil servant medical benefit scheme from a direct reimbursement system to a health insurance model. If implemented, this would be a medium- to long-term positive sentiment driver for private hospitals, especially BDMS, BCH, and CHG, which have broad networks and experience serving insured patients. The social security issue remains a key factor for BCH, CHG, RJH, and LPH. The risk of complex-disease revenue reversals in 2026 has diminished, while there is still upside risk from a potential increase in the capitation rate from the current 1,808 baht per person per year. We maintain a market-weight rating on the hospital group. Although second-half 2026 profits are expected to recover, renewed flare-ups in Middle East tensions could disrupt travel and cause the recovery to fall short of expectations. Our top picks are PR9 with a target price of 22.80 baht, supported by recovering foreign patient revenue and complex-disease cases as well as easing costs, which should drive above-group profit growth; and CHG with a target price of 1.95 baht, given its stronger year-on-year profit growth relative to peers, low exposure to Middle Eastern clients, and upside from social security and the civil servant benefit reform. BDMS has a target price of 24.70 baht, but its share price has underperformed the group and we expect a second-half 2026 profit recovery. For BCH, we recommend a trading strategy based on the potential for a special dividend and upside risk from social security.