Is investing in hospital stocks in 2025 a good idea? Comparing the 7 top performers in the Thai stock market

Why Hospital Stocks Are a Safe Investment

This year, many investors have turned their attention to stable-performing stocks. Hospitals are classified as Defensive Stocks because healthcare services are essential and not scarce in any economic situation. Whether the market is booming or slowing down, the demand for medical treatment remains continuous.

Characteristics of this investment type include:

🏥 Steady Income - Once operational, hospitals generate continuous cash flow from patients, unlike product-selling businesses that fluctuate seasonally.

🏥 Low Risk - When the overall stock market is in crisis, good hospital stocks tend not to fall sharply. Conversely, during bullish markets, these stocks do not rise dramatically on their own.

🏥 Strong Financial Position - The profit margin per expenditure is relatively high, and capital recovery occurs quickly due to stable cash flow.

Key Factors in Choosing Suitable Hospital Stocks

Before investing, investors should check these aspects:

Customer Base Type - Some hospitals focus on international patients (such as BH, BDMS, BCH), while others target the domestic market (VIBHA, CHG, PR9). Understanding where the revenue comes from helps analyze external factors. For example, if the foreign market declines, hospitals relying on international patients will be affected.

Financial Figures - PE Ratio and ROE are important indicators. PE shows if the company’s profit is overvalued, while ROE indicates how efficiently the company uses shareholders’ equity. A high ROE means the company manages its capital well.

Growth Strategy - How hospitals plan to expand impacts future performance. Some grow through mergers, others by opening new branches, or specializing in certain fields. Each strategy carries different risks and opportunities.

7 Hospital Stocks to Watch

Comparison table for 2025

BH - The true leader of the hospital stock market.

Bumrungrad Hospital was founded in 1984 and restructured in 1994. It is currently a leading provider with the highest market value among all hospitals.

Key Data:

• Market Cap: 139,110.29 million Baht
• Net Profit: 5,871.77 million Baht
• ROE: 31.91% (highest in the group)
• P/E: 18.34 times

Business Policy: BH plans to increase service charges for complex cases and expand capacity to accommodate more international patients, aligning with the booming medical tourism trend.

Main Revenue Sources: General patients 66.52%, Social Security 32.63%, Others 0.85%

BDMS - Regional Leader

Bangkok Dusit Medical Services is a large healthcare provider operating in multiple countries including Thailand, Mongolia, Myanmar, and Laos. Founded in 1975.

Key Data:

• Market Cap: 355,980.84 million Baht (highest)
• Net Profit: 11,654.41 million Baht (highest)
• ROE: 16.77%
• P/E: 22.81 times

Current Capacity: Supports over 5,500 outpatient visits per day, a regional leader with comprehensive services.

Expansion Strategy: BDMS plans to add beds, invest in specialized medical centers, and build new hospitals, expected to support long-term growth.

Revenue Breakdown: Domestic patients 33%, international patients 67%

BCH - Network Leader

Bangkok Chain Hospital manages the largest hospital network, including World Medical, Kasemrad, Intermedical, Kasemrad, and Karunvej, totaling 15 hospitals and 2 polyclinics.

Key Data:

• Market Cap: 34,164.35 million Baht
• Net Profit: 1,049.33 million Baht
• ROE: 11.88%
• P/E: 23.13 times

Analyst View: Krungsri Securities has upgraded to (buy), expecting 2025 profit to grow by 23%.

Revenue Flow: Domestic patients 71%, foreign patients 29%, Food sales +12%, Others 14%

CHG - Small but Potential

Chularat Hospital was founded in 1986, with 12 subsidiaries and branches in Bangkok and provinces, totaling 15 locations.

Key Data:

• Market Cap: 23,320.00 million Baht
• Net Profit: 873.63 million Baht
• ROE: 15.42%
• P/E: 20.32 times

Expansion Plan: CHG aims to increase beds and branches to meet growing demand in developing areas.

Revenue Structure: OPD 30.6%, IPD 34.5%, Social Security 35%

( PR9 - Tech Specialist

Rama 9 Hospital aims to be a modern, trusted health center, established since 1989.

Key Data:

• Market Cap: 16,984.08 million Baht
• Net Profit: 506.11 million Baht
• ROE: 13.57%
• P/E: 24.47 times )highest(

Innovation & Service: PR9 invests in high-tech medical equipment, develops digital platforms like 9 CARE and 9 CARE Shop to meet modern patient needs.

Customer Base: Mainly domestic patients and Thai expatriates, with expansion into other ASEAN countries.

Revenue Ratios: Outpatients 59%, inpatients 41%, including health insurance 25%, self-pay 68%, contracted companies 7%

) VIBHA - Small but Growing

Vibhavadi Hospital has been operating since 1976 as a general hospital.

Key Data:

• Market Cap: 24,572.58 million Baht
• Net Profit: 778.31 million Baht
• ROE: 8.49% ###lowest(
• P/E: 23.85 times

Analyst View: Yuanta Securities recommends buying, with a target price of 2.74 Baht, optimistic for 2025 due to resolving social security issues and new investments.

Bed Capacity: Bangkok 824 beds, provinces 698 beds, abroad 200 beds.

) THG - Beware! Bad News Ahead

Thonburi Healthcare Group is a major provider aiming to build high-quality tertiary hospitals, established since 1986, awarded 5-star CGR.

Key Data:

• Market Cap: 10,678.09 million Baht
• Net Profit: -302.98 million Baht ###loss!(
• ROE: -6.91% )negative###
• P/E: Not available

Warning: In 2025, THG’s stock price has moved after clarifying allegations against management. Some analysts expect further decline. Caution: Negative ROE indicates losses. Review financial reports carefully before deciding.

What Investors Must Do Before Buying Hospital Stocks

✅ Study the Business - Understand how the hospital operates, who its customers are, and management practices.

✅ Check Financials - PE and ROE help determine if the stock is overvalued or undervalued, and if the company manages its funds well.

✅ Understand Customer Types - International patients depend on the global economy; domestic patients depend on Thailand’s economy. The impact varies.

✅ Find Growth Plans - Does the company have long-term expansion plans? Are they opening new branches or services? These affect future profits.

✅ Consult Experts - If unsure, follow opinions from reputable stock analysts.

Long-term Investment in Hospital Stocks

Many investors are confused about which to choose. The key is understanding each model and revenue source, as each has unique strengths.

For those seeking:

• High foreign revenue: BH, BDMS, BCH are most suitable.
• Continuous expansion: CHG, PR9 have clear growth plans.
• Growth opportunities: VIBHA is expected to improve in 2025.
• Risks to watch: THG shows negative signals; monitor news closely.

Summary

For stable long-term investment, these 7 hospital stocks have potential for income and growth. The best choice depends on each investor’s analysis. Study all information and stay updated with news to make cautious and effective investment decisions.