Thai Hospital Stocks Surge on Recovery Hope
On Wednesday, share prices for several Thai hospital companies experienced significant gains, reflecting a growing positive sentiment within the healthcare sector. This rally was particularly strong for Bumrungrad Hospital Public Company Limited, with its shares climbing by 7.26% to THB 162.50 on a substantial trading value of THB 1.93 billion. Other major players also saw their stock prices rise, including Bangkok Dusit Medical Services Public Company Limited, which gained 1.41%, and Bangkok Chain Hospital Public Company Limited, which increased by 1.44%. The gains signify a notable recovery in the service sector, primarily driven by a steady rebound in foreign tourist arrivals. This upward trend, which has been consistent for three consecutive weeks, is a key indicator of the revival of medical tourism, a critical revenue source for these healthcare providers.
Analyst Insights and Market Momentum
Analysts from Krungsri Securities have noted that Thai hospital stocks are gaining momentum and are in the process of testing their 75-day Exponential Moving Average. This technical signal indicates a consistent recovery in the healthcare service sector after a period of underperformance. Despite the sector lagging behind other service categories with a year-to-date return of -18.6% compared to the SET Index’s -11.9%, analysts believe there is significant upside potential. This optimistic outlook is further bolstered by several catalysts, including a two-day surge in oil prices, which is expected to enhance the purchasing power of patients from the Middle East, a crucial market during the third-quarter peak season. The sector is currently trading at what is considered a deep value, making it an attractive target for fund inflows into emerging markets.
Strong Outlook for Leading Healthcare Providers
Based on fundamental analysis, major securities firms are maintaining a positive outlook on the sector’s leading players. Krungsri Securities, for example, has reiterated a ‘BUY’ rating on Bangkok Dusit Medical Services with a target price of THB 33 per share, naming it as its top pick. Similarly, a ‘BUY’ rating was placed on Bumrungrad Hospital, with a target price of THB 200 per share. The surge in Bumrungrad’s share price was specifically driven by market expectations of a stronger second-quarter performance, thanks to the return of international patients, particularly from the Middle East. While there have been some minor issues with Kuwaiti patients, analysts consider their impact to be minimal, and the company has also raised service fees to offset any revenue softness. Overall, operations are recovering as anticipated, with a forecast of approximately THB 7.9 billion in net profit for 2025, confirming the positive growth prospects for the second half of the year.
