Must-watch for the year 2568: How to choose 7 hospital stocks to ensure guaranteed profits

Investing in hospital stocks—why have they become so popular recently? The reason is simple—these stocks are regarded as defensive stocks, which means regardless of economic conditions, there are always people getting sick and needing medical care. Moreover, the demand for healthcare services continues to grow, driven by an aging population, emerging new diseases, and other factors that serve as growth engines for hospital stocks. Compared to other industries, hospital stocks carry lower risks, have more stable cash flows, and are very suitable for investors seeking long-term steady returns.

3 Key Points You Must Know Before Choosing Hospital Stocks

Before selecting hospital stocks, doing these 3 preparations can make your investment more confident:

Step 1: Understanding Patient Composition Is Crucial

Hospital stocks can be broadly divided into two categories—one mainly serving foreign patients (such as BH, BDMS, BCH), which requires attention to international tourism and cross-border medical trends; the other mainly serving local patients (VIBHA, CHG, PR9, THG), which depends on domestic economic conditions and healthcare policies. Different patient groups determine different risks and opportunities, which is the first threshold in stock selection.

Step 2: Understand the Magic Numbers PE and ROE

PE ratio (Price-to-Earnings) tells you how much profit you get per dollar invested. A lower PE generally indicates a cheaper stock, but it should be compared with peers. ROE (Return on Equity) shows how much profit the company makes with your investment; a higher ROE indicates better management efficiency. Generally, hospital stocks with PE between 18-24 and ROE between 10-20% are considered balanced. Too high may suggest overvaluation, too low could indicate issues.

Step 3: Understand the Growth Strategies of Hospitals

Hospitals expand mainly through three approaches: mergers and acquisitions to quickly increase scale; opening new branches in strategic locations; specialization and deepening in specific markets (e.g., hospitals focusing solely on IVF treatments for Thai patients). Each approach has different financial pressures and return cycles, requiring careful analysis.

7 Hospital Stocks in a Panorama Scan

TOP 1: BH—Flagship of High-End Medical Care

Bumrungrad Hospital Public Company Limited is a well-established Thai healthcare giant, founded in 1984, and has become a main provider for social security medical services. The most attractive point of BH stock is its high ROE of 31.91%—a leader among hospital stocks, indicating every dollar of capital is being fully utilized.

Market Cap: 139.1 billion THB | Price: 183 THB/share | PE: 18.34x | ROE: 31.91%

Key Highlights: 66.52% of patients are general patients, 32.63% from social security, 0.85% from others. The company plans to optimize service pricing for complex diseases and expand its capacity to serve foreign patients, especially in medical tourism. If international travel recovers, this stock will directly benefit.

( TOP 2: BDMS—Pioneer in Medical Tourism

Bangkok Dusit Medical Services Public Company Limited has the largest market cap (355.9 billion THB) and is a regional leader in Southeast Asia healthcare. It has medical networks in Thailand, Mongolia, Myanmar, with daily outpatient visits exceeding 5,500.

Market Cap: 355.9 billion THB | Price: 23.30 THB/share | PE: 22.81x | ROE: 16.77%

Key Highlights: 67% of revenue comes from foreign patients! This is the highest among peers, indicating deep reliance on international medical tourism. Good news is they plan to continue recruiting foreign patients, expand bed capacity, and establish specialized centers, providing strong medium- to long-term growth. The downside is the relatively high PE and potential impact from international pandemics or geopolitical risks.

) TOP 3: BCH—Stable Growth Balancer

Bangkok Chain Hospital Public Company Limited owns 15 hospitals and 2 clinics, distributed across Bangkok, provinces, and Laos. Among healthcare stocks, BCH ranks high in market value. Brokerage firms upgraded its rating from “Hold” to “Buy” due to an expected 23% net profit growth in 2025.

Market Cap: 34.1 billion THB | Price: 14.40 THB/share | PE: 23.13x | ROE: 11.88%

Key Highlights: 71% of revenue from local patients, 29% from foreign patients, indicating balanced income streams. Growth in medical supplies and food sales increased by 12%, other services by 14%, showing diversification. Valuation is relatively cheap, and growth prospects are optimistic, making it a good choice for conservative investors.

TOP 4: CHG—Small but Beautiful Specialty Hospital

Chularat Hospital Public Company Limited was established in 1986, with 12 subsidiaries, 15 hospitals, and clinics. Although not the largest, it is well-managed, with a PE of only 20.32, which is low among peers.

Market Cap: 23.3 billion THB | Price: 2.24 THB/share | PE: 20.32x | ROE: 15.42%

Key Highlights: Outpatient patients account for 30.6%, inpatient 34.5%, social security 35%, with balanced proportions. The company has expansion plans targeting fast-growing economic regions. Its low stock price makes it suitable for small-scale investment.

( TOP 5: PR9—Explorer of Digital Health

Rama 9 Hospital Public Company Limited was founded in 1989, mainly serving local patients. Its most distinctive feature is investment in digital healthcare platforms—9 CARE platform and 9 CARE Shop—aiming to build an internet healthcare ecosystem.

Market Cap: 16.9 billion THB | Price: 21.30 THB/share | PE: 24.47x | ROE: 13.57%

Key Highlights: 59% outpatient, 41% inpatient. 25% insured patients, 68% self-paying, 7% under company contracts. The future prospects of the digital platform are promising, but currently, PE is the highest, indicating market high expectations for growth.

) TOP 6: VIBHA—Strategist in Social Security Hospitals

Vibhavadi Medical Center Public Company Limited was established in 1976, positioned as a general hospital. Analysts give a “Buy” rating with a target price of 2.74 THB, citing declining social security-related risks and new business expansion as growth drivers.

Market Cap: 24.5 billion THB | Price: 1.88 THB/share | PE: 23.85x | ROE: 8.49%

Key Highlights: 45% outpatient, 55% inpatient. Located in Bangkok with 824 beds, 698 beds in other provinces, and 200 overseas beds, with reasonable geographic distribution. ROE is low, indicating room for efficiency improvement, but expansion plans could change this. The stock is cheap and relatively low risk.

TOP 7: THG—Object of Risk Warning

Thonburi Healthcare Group Public Company Limited was founded in 1986, a benchmark for tertiary hospitals. However, in 2025, the situation was unusual—net profit was negative 3.02 million THB, and ROE was also negative at -6.91%.

Market Cap: 10.6 billion THB | Price: 13.50 THB/share | ROE: -6.91%

Risk Warning: This stock has experienced volatility due to management-related allegations. Although it has rebounded, the fundamentals remain under pressure. Analysts expect potential downward adjustment. Caution is advised; wait for signs of turnaround before investing.

The Ultimate Strategy for Hospital Stock Investment

If your goal is long-term holding for stable income, hospital stocks are indeed a good choice. But remember these points:

First: Don’t be fooled by high-growth stories. Review past 3-5 years’ performance to see if growth is real and sustainable.

Second: Compare PE and ROE. In the current market environment, hospital stocks with PE between 18-23 and ROE between 12-18% offer the best value.

Third: Diversify your holdings. Don’t put all your chips into one hospital stock. You can hold one or two large-cap stocks targeting foreign patients (like BH, BDMS), plus one local healthcare service stock (like VIBHA, PR9) to hedge different risks.

Fourth: Regularly review. When quarterly earnings are released, check patient numbers, average charges, profit margins for unusual fluctuations—these are the most direct warning signals.

Why Are Hospital Stocks Worth Holding Long-Term?

Simply put: People will always need to see doctors. Regardless of recession or boom, healthcare demand will only increase, not decrease. Thailand is entering an aging society, with demand for high-end medical services rising year by year, and medical tourism recovering. These long-term trends create a solid income foundation for hospital stocks.

More importantly, hospital stocks have very stable cash flows. Once infrastructure investments are completed, subsequent income is basically continuous. Compared to real estate stocks that require ongoing development or consumer stocks that are sensitive to economic cycles, hospital stocks are indeed more “worry-free.”

Final Words

Choosing hospital stocks is not like buying a lottery ticket; it requires diligent research and rational investing. Analyze patient composition, financial indicators, and expansion strategies one by one, then combine with your risk tolerance and holding period to make decisions. The 7 stocks above each have their own characteristics—if you want high ROE, choose BH; for international focus, BDMS; for undervaluation, CHG or VIBHA; for innovation concepts, PR9. The key is to find the one that suits you best and hold onto it. Hospital stocks’ returns are not about overnight riches, but they can steadily help you accumulate wealth.