Praram 9 Hospital Public Company Limited

KGI Securities (Thailand) stated that PR9 reported a net profit of 184 million baht for 2Q69, up 1.3% year-on-year but down 0.1% quarter-on-quarter, representing 21.7% of the full-year profit estimate of 849 million baht, which is up 3.1% year-on-year. The company also announced an interim dividend of 0.20 baht per share, with the ex-dividend date on August 24, 2026. KGI maintains a positive view on the business outlook, expecting stronger profits in the second half of 2026, as the second half typically accounts for 52-56% of annual profits, with the fourth quarter being the strongest. July 2026 sales grew year-on-year in the mid-single digits, supported by the recovery of patients from the Middle East, higher revenue per bill from complex diseases, and initial positive results from the Myanmar market. The expansion of complex disease treatment centers, such as kidney transplant, cardiac, and orthopedic surgery centers, along with bed occupancy rates exceeding 65% and network expansion in the UAE and Kuwait, will support operating leverage and profit margins. First-half 2026 net profit stood at 369 million baht, down 3.5% year-on-year, representing 43.5% of the full-year estimate. Profits are expected to grow 7.3% year-on-year in 2027, supported by the normalization of foreign patient numbers. KGI maintains a "Buy" recommendation with a DCF-based target price of 21.00 baht for 2027, assuming a WACC of 8.5% and a terminal growth rate of 1.0%.

The Cabinet meeting approved in principle a draft royal decree to extend Social Security coverage under Section 33 to three groups of employees previously exempted: those in agriculture, forestry, and animal husbandry; employees of individual employers; and employees of stall-holder employers. This is expected to add 550,000 insured persons in 2026 and 1.05 million by 2030. Krungsri Securities views this as a positive sentiment for hospital groups treating insured patients, with upside to revenue in the medium to long term. Hospitals with the highest social security revenue in the first half include BCH at 38% and CHG at 30%, while RJH has 53%, SKR 36%, VIH 26%, and PHG 40%. The firm maintains a bullish stance on the hospital group, expecting profits to have passed the trough, supported by the high season and the increase in social security treatment rates. Top picks are BDMS with a target price of 25 baht and PR9 with a target price of 24 baht. BCH, with a target price of 12 baht, is the biggest beneficiary if treatment rates are adjusted.

Nine listed hospital companies reported standout profit growth in the second quarter of 2026 compared with a year earlier. RJH posted net profit of 112.85 million baht, up 79.63%, while RAM recorded net profit of 344.58 million baht, up 28.55%, and EKH posted net profit of 60.18 million baht, up 27.87%, helped by more Thai and foreign patients, branch expansion, and revenue from specialised medical centres. CGSI said earnings at the six hospital companies it covers appear to have passed their trough, with combined normalised profit down 2% from a year earlier and down 8% from the previous quarter. Excluding RAM, combined normalised profit fell 4% from a year earlier and 10% from the previous quarter. CGSI maintained an Overweight rating on the hospital sector and selected BH and PR9 as top picks because they have a high proportion of foreign patients and are likely to recover better than peers.

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.

CGS International Securities Thailand expects the SET index to trend weaker in the 1,600-1,620 point range today, pressured by volatility in US government bond yields and uncertainty over the Middle East situation. Its research team said the index may decline in line with US and Nikkei equity markets this morning. It recommends PTTEP, which posted net profit of 27.197 billion baht in the second quarter of 2026, up 130 percent from the previous quarter, and PR9, whose revenue and profit are expected to recover in the second half of 2026, especially at hospitals with a high proportion of foreign patients.

Praram 9 Hospital, or PR9, said its third-quarter 2026 operating performance is showing growth compared with a year earlier, driven by a rise in foreign patients, especially from the Middle East and Myanmar, as well as more Thai patients returning for treatment. Its second-half strategy is to upgrade care for complex diseases such as kidney disease, heart disease and brain disorders, along with robotic surgery, to attract foreign patients who fly in directly for treatment. Foreign patients currently account for about 27% of the total, with Myanmar and Middle Eastern patients together making up more than half of all foreign patients. The company is confident that 2026 revenue will grow by a single-digit percentage as planned, and is also watching opportunities from Moderna and Merck's mRNA cancer vaccines, as well as government policy that could shift civil servant welfare benefits to a health insurance system, which would create a new customer base for private hospitals.

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.

Analysts at InnovestX Securities expect combined net profit of Thai listed companies in the third quarter of 2026 to continue growing from the same period last year, despite pressure from geopolitical risks and a prolonged El Niño. Combined net profit in the second quarter of 2026 expanded 14.3 percent from a year earlier and 12.0 percent from the previous quarter, marking a sixth consecutive quarter of growth and a fifth consecutive quarter of double-digit growth, supported by higher margins and selling price increases amid expanding demand, especially in energy, petrochemicals, and construction materials, which benefited from the Middle East conflict. More than 50 percent of the 107 listed companies with market forecasts reported net profit above expectations. The broker recommends avoiding sectors where earnings remain weak and accumulating five The Star stocks: HANA, ERW, PR9, BCH, and TIDLOR, which have potential for standout profit growth both from a year earlier and from the previous quarter, driven by company-specific positive factors and government stimulus measures.

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.

Kasikorn Securities maintains a buy rating on Ramkhamhaeng Hospital Public Company Limited, or PR9, with a mid-2027 target price of 20.60 baht. The broker expects third-quarter 2026 profit to improve from the previous quarter, despite risks from the Middle East situation and the impact of the tax base. Third-quarter 2026 revenue has a chance to set a new record high, supported by better fixed costs and lower selling and administrative expenses. The revenue trend from foreign patients is strengthening, driven by a recovery in Myanmar and Middle Eastern patients, while revenue from Chinese patients continues to decline. Revenue from insured patients recovered 20 percent from the previous year, thanks to expanded cooperation with domestic insurance companies. PR9 will trade ex-dividend on August 24 for a first-half 2026 dividend payment of 0.20 baht per share.

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.

Praram 9 Hospital, or PR9, reported second-quarter net profit for 2026 of 184 million baht, up 1.3 percent from the same period last year. Total revenue was 1.3306 billion baht, an increase of 2.6 percent from a year earlier and 2.2 percent from the previous quarter. Revenue from international patients came to 378.3 million baht, growing 10.8 percent from a year earlier and 13.7 percent from the previous quarter, accounting for 29 percent of hospital revenue. In particular, revenue from Myanmar patients surged 55.8 percent from a year earlier, reaching a new quarterly high. The EBITDA margin improved to 23.4 percent, reflecting better operating efficiency and revenue quality. The company announced an interim dividend of 0.20 baht per share, with the stock trading ex-dividend on 24 August and payment on 7 September 2026.

Praram 9 Hospital is moving forward with upgrading itself into a regional specialty medical center to attract foreign patients seeking treatment for complex diseases. The Myanmar patient group grew 55.8% compared to the same period last year, setting a new quarterly record and helping drive a 6.8% increase in inpatients treated for complex conditions. The hospital is preparing to open a Biplane Cath Lab and a Hyperbaric Oxygen Therapy center, while investing in the da Vinci Xi surgical robot, a premium dialysis center, and new HIS and ERP systems. It maintains a debt-to-equity ratio of 0.2 times and has received the Asia Responsible Enterprise Awards 2026 in the Health Promotion category.

Finansia Securities expects the medical group's normalised profit in the second quarter of 2026 to total 6.01 billion baht, down 8% from the previous quarter and down 2% from a year earlier, mainly due to slowing domestic spending and unrest in the Middle East affecting revenue from Thai and foreign patients. However, PR9's normalised profit stands out, growing 4% from the previous quarter and 5% from a year earlier, thanks to its ability to maintain revenue and control costs. Meanwhile, CHG's normalised profit is expected to grow 8% from a year earlier, the highest in the group, driven by company-specific positive factors. The research team maintains a positive view on the third quarter of 2026, expecting normalised profit to grow both quarter-on-quarter and year-on-year, supported by the seasonal high season, and continues to pick PR9 as the top stock in the group, given its accelerating profit trend from strategies to increase revenue from foreign patients and complex disease treatments.

The market is watching CPW and PR9 after their Q4 2024 earnings recovered. CPW reported a net profit of 1.2 billion baht, up 15 percent from the previous year, supported by same-store sales growth of 8 percent. Meanwhile, PR9 posted a net profit of 850 million baht, up 22 percent from the previous year, driven by a 12 percent increase in outpatient revenue. Analysts see continued growth momentum for both companies in 2025, backed by branch expansion plans and new services.

The research team at TTB Wealth Securities, or TTBWEALTH, has assessed the earnings outlook for the second quarter of 2026 and selected three standout stocks expected to deliver strong net profit growth. They are Praram 9 Hospital, or PR9, with an estimated net profit of 194 million baht, up 6 percent from a year earlier and 5 percent from the previous quarter, and a target price of 21 baht. Stecon Group, or STECON, with an estimated net profit of 759 million baht, surging 367 percent from a year earlier, driven by lower administrative expenses and profit sharing from the U-Tapao airport project, and a target price of 21 baht. And Ratchathani Leasing, or THANI, with an estimated net profit of 354 million baht, up 27 percent from a year earlier and 4 percent from the previous quarter, supported by good asset quality, lower financial costs, and higher loan origination, with a target price of 2.50 baht.

Globlex Securities, or GBS, estimates that the Thai stock index in August is likely to move in a range of 1,600 to 1,650 points, supported by a more relaxed investment climate for risk assets. This follows President Donald Trump's cancellation of plans to attack Iran and the achievement of a temporary ceasefire agreement, which caused WTI crude oil prices to ease below 80 US dollars per barrel, after having surged past 88 US dollars per barrel. In addition, the OPEC+ group is likely to increase production capacity by another 188,000 barrels per day in September. Meanwhile, investors have reduced the probability of a US Federal Reserve interest rate hike in September to 65 percent from 82 percent, and the European Central Bank kept its policy rate at 2.25 percent. On the domestic front, foreign capital inflows have clearly returned, with net purchases in July reaching as high as 45 billion to 48.7 billion baht, up from 6.86 billion baht in the previous month, bringing cumulative net purchases since the beginning of the year to 73 billion to 74.3 billion baht. This is coupled with June exports expanding 20.8 percent, valued at 34.66 billion US dollars, and headline inflation slowing to 2.42 percent. GBS recommends an investment strategy focusing on stocks with strong fundamentals and outstanding second-quarter 2026 earnings growth prospects, namely CBG, STA, BBGI, PR9, and TNP.

CGSI assesses listed-company earnings for the second quarter of 2026, with the petrochemical sector driving growth while the communication and tourism sectors may disappoint. The firm maintains its year-end 2026 SET Index target at 1,630 points and selects BH, PR9, THAI, ERW, CRC, CPN, AMATA, WHA, GULF, TRUE, TFG, KBANK, MTC, and TIDLOR as top picks. The research team notes that the non-bank sector will see net profit decline 14 percent year-on-year and 7 percent quarter-on-quarter in the second quarter of 2026, based on Bloomberg consensus estimates. The petrochemical sector is likely to be supported by higher spreads, while the transport sector, especially airlines, tends to weaken due to rising fuel costs stemming from the situation in the Middle East. In addition, the ICT and tourism sectors face risks of disappointment, as Bloomberg consensus estimates of strong net profit growth of 26 percent year-on-year for ICT and 15 percent year-on-year for tourism are unlikely to materialize amid a still-weak economy and a 4 percent year-on-year drop in foreign tourist arrivals. Tensions in the Middle East and high oil prices have caused Thailand to face twin deficits, with a trade deficit of 12.4 billion US dollars and a current account deficit of 13.3 billion US dollars in the first half of 2026. Elevated oil prices also increase the risk of government price intervention, which would pressure margins for downstream oil and gas businesses and could push inflation higher in the second half of 2026. While the Bank of Thailand views current inflation as likely temporary, the research team believes the central bank will not raise interest rates at the Monetary Policy Committee meeting on August 26, 2026. Regarding the Senate election collusion case, the Election Commission expects to conclude the investigation by the end of August, but the timeline may be extended. The most likely scenario is that charges will be filed against only some individuals, which would negatively affect market sentiment, and the broader legal proceedings would take longer than before. The SET currently trades at a 12-month forward price-to-earnings ratio of 16.7 times, but this drops to 14 times when excluding DELTA, which has a forward P/E of 83 times. CGSI maintains its year-end 2026 SET Index target at 1,630 points. Positive factors that could support the market include an easing of geopolitical tensions and lower oil prices, while downside risks are the Election Commission filing charges against key politicians from coalition parties and a sharp slowdown in tourist arrivals.

Analysts at InnovestX Securities say the SET Index has risen over 31.2% from the start of the year to date, supported by foreign fund flows into electronics on the AI theme and better-than-expected domestic fundamentals. But at 1,650 points, the market is starting to face tight valuation constraints, especially for the large-cap stocks that have led the rally, where foreign ownership has exceeded the five-year average. They therefore expect a rotation of funds into laggard stocks where foreign ownership and valuations are below average, while earnings are still growing well. The short-term strategy recommends switching into laggard stocks via two themes. The first is Earnings Play, focusing on stocks with strong expected second-quarter 2026 earnings growth and a robust second half, such as ADVANC, CPN, GULF, PR9, SCGP, and TIDLOR. The second is Foreign Underowned Play, focusing on SET50 stocks where foreign ownership is below the five-year average and earnings momentum is good, such as BEM, CPALL, HMPRO, MTC, OR, TRUE, and TU.

Yuanta Securities forecasts that Praram 9 Hospital Public Company Limited, or PR9, will post a strong profit recovery in the second quarter of 2026, with net profit estimated at 193 million baht, up 5 percent from the previous quarter and 6 percent from a year earlier. While revenue from Thai patients is expected to grow only 1 percent due to economic conditions, international patient revenue is projected to rise 5 percent, led by a 12 percent increase from Myanmar patients and a 3 percent gain from Middle Eastern patients. Margins are expected to improve thanks to a higher proportion of complex cases and easing drug costs, lifting the EBITDA margin to 24.2 percent from 23.9 percent in the prior quarter and 22.9 percent a year ago. The second half of the year is expected to recover more strongly than the first half, in line with the medical tourism season, although the Middle East situation warrants monitoring as this patient group accounts for about 9 percent of total revenue. Yuanta Securities maintains a buy rating and a 2026 target price of 22.80 baht, viewing the stock as inexpensive at a price-to-earnings ratio of 16.5 times, compared with a five-year average of 26 times.

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.

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.