2568 Hospital Stock Investment Map: Which of the 7 hospital stocks is the most worth investing in?

In times of economic uncertainty, the healthcare industry always remains resilient. As a representative of defensive stocks, หุ้นรพ attracts increasing investor attention due to its stable cash flow and sustained demand base. So among the 7 leading hospital stocks in the Thai market, which one has the most potential?

Why Are Hospital Stocks Worth Paying Attention To?

Against the backdrop of accelerating population aging and frequent emergence of new diseases, healthcare demand will only increase, not decrease. Unlike property stocks that require continuous new projects to maintain growth, hospital stocks’ core advantage is—one-time investment, long-term cash flow. From the moment they are built, a steady stream of patients provides ongoing revenue.

More importantly, even if the stock market crashes, people will not reduce their medical visits, and hospital stocks tend to remain unaffected. This is the confidence behind the so-called “King of Defense.”

Benchmark Table of 7 หุ้นรพ: Who Has the Most Impressive Numbers?

Data as of February 2025

Market Segmentation: Understanding the Three Main Types

Internationalization Route: BH, BDMS, BCH

These three stocks share the common feature that foreign patients are the main source of revenue. Among them, BDMS has the highest proportion of international patients at 67%, while BH and BCH also maintain foreign patient contributions above 60%.

Advantages: Foreign patients generally have strong payment ability and higher premium potential. BDMS’s market cap is the largest among the three, indicating market optimism about its international expansion prospects.

Risks: International tourism and outbound medical demand are sensitive to exchange rates, flight availability, and geopolitical factors. In the event of a global economic downturn or pandemic resurgence, these stocks are likely to be hit first.

Domestic Deep-Rooted Route: CHG, PR9, VIBHA

These hospitals mainly generate revenue from local patients, accounting for about 70%-75%. Their strategy is to expand beds and services to grow.

Advantages: Performance aligns with domestic economic cycles, making it relatively predictable. PR9 and CHG both have ROE above 15%, indicating solid profitability.

Risks: Domestic healthcare market competition is intensifying, with new entrants emerging constantly. Growth potential for these stocks is comparatively limited.

Risk Warning: The Dilemma of THG

THG has a negative ROE (-6.91%), meaning this hospital was loss-making in 2025. Although recent rebounds due to some clarifications, analysts generally remain pessimistic about its outlook.

Understanding These Three Numbers to Pick the Right Hospital Stock

P/E Ratio: Bargain or Premium?

• P/E below 20: BH(18.34), CHG(20.32) are relatively cheap
• P/E above 22: BDMS(22.81), BCH(23.13), VIBHA(23.85) already carry a valuation premium

Cheap doesn’t always mean good. The key is whether P/E matches growth potential. BH has a low P/E but a high ROE of 31.91%, indicating strong profit growth, making its low P/E an entry opportunity. Conversely, VIBHA’s ROE is only 8.49%, yet P/E is as high as 23.85, which seems mismatched.

ROE: The Most Authentic Indicator of Return

ROE of hospital stocks directly reflects how efficiently they use shareholders’ funds:

• ROE > 15%: Excellent tier. Includes BH(31.91%), BDMS(16.77%), CHG(15.42%)
• ROE 10%-15%: Passable tier. BCH(11.88%), PR9(13.57%)
• ROE < 10%: Caution needed. VIBHA(8.49%), THG( negative)

High ROE usually indicates advantages in cost control, pricing power, or asset utilization.

Market Cap and Growth: Can the Big Elephant Still Dance?

BDMS (market cap 355.9 billion THB) is already a mega-cap, with limited growth room. Mid-cap stocks like CHG (23.3 billion) and PR9 (17 billion) may have more flexibility for growth.

Three Questions Every Investor Should Ask

1. Patient Source Determines Risk Type

Ask yourself: Can I tolerate fluctuations in international tourism demand?

• If No: choose CHG, PR9, or VIBHA, which are less volatile local hospital stocks
• If Yes: BH and BDMS may offer higher returns

2. Is the valuation attractive?

Is now the bottom entry point? Compare P/E and ROE for valuation:

• Most cost-effective: BH (rare combo of low P/E and high ROE)
• Highest premium: VIBHA (low ROE but high P/E, be cautious)

3. What is the company’s next strategic move?

Hospital stock growth relies on three strategies: mergers & acquisitions (rapid expansion), new branch hospitals (steady growth), specialized departments (high-end positioning).

• Aggressive expansion: BDMS continues opening new medical centers; BCH plans 22% net profit growth
• Conservative approach: PR9 focuses on optimizing existing medical services, developing the 9CARE digital platform

Golden Rules for Long-Term Holding

หุ้นรพ is naturally suitable for long-term allocation, but avoid a few pitfalls:

✓ Must-Do:

• Regularly monitor hospital bed utilization and new patient growth
• Track social security policy changes (significant for local hospitals)
• Observe international tourism recovery indicators (impacting internationalized hospitals)

✗ Never Do:

• Use hospital stocks for T+0 quick trading (liquidity is limited)
• Chase hype or speculative trading (medical demand is rigid, no need for hype)
• Ignore negative news (e.g., THG’s reputation issues)

Final Recommendations

For steady income and passive earnings: choose BH or PR9, as both have sufficient ROE and cash flow to support long-term holding.

Optimistic about international medical tourism recovery: BDMS is the largest international player, but prepare for volatility.

Seeking mid-cap potential stocks: CHG and PR9 are options, with PR9’s digital transformation (9CARE platform) being a plus.

Avoid: THG, which faces fundamental issues; now is not the time to buy.

Hospital stocks won’t make you rich overnight, but they can help you survive the chaos most steadily. Picking the right hospital stock is choosing the most “insurance-like” investment in your life.