Cabinet Expands Social Security, Boosting Hospital Stocks BCH and CHG

Analyst

โดย HoonVision·

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Summary · why it matters

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.

Bangkok Chain Hospital Public Company Limited ▲

Chularat Hospital Public Company Limited ▲

Rajthanee Hospital Public Company Limited ▲

Bangkok Dusit Medical Services Public Company Limited ▲

Praram 9 Hospital Public Company Limited ▲

Sikarin Public Company Limited ▲

Impact on stocks 8

Health Care▲ · 6 stocks

Bangkok Chain Hospital Public Company Limited

▲ PositiveDemandrelevance

Expansion of social security coverage adds insured patients, and BCH has 38% social security revenue, making it a major beneficiary.

Chularat Hospital Public Company Limited

▲ PositiveDemandrelevance

CHG has 30% social security revenue and will benefit from increased insured patients.

Rajthanee Hospital Public Company Limited

▲ PositiveDemandrelevance

Expansion of social security coverage increases insured patients, and RJH has 53% social security revenue.

Praram 9 Hospital Public Company Limited

▲ PositiveDemandrelevance

PR9 is a top pick with target price 24 baht, benefiting from social security expansion.

Sikarin Public Company Limited

▲ PositiveDemandrelevance

Expansion of social security coverage increases insured patients, and SKR has 36% social security revenue.

Patrangsit Healthcare Group Public Company Limited

▲ PositiveDemandrelevance

PHG has 40% social security revenue, so expansion positively impacts its demand.

Aging Population▲ · 2 stocks

Bangkok Dusit Medical Services Public Company Limited

▲ PositiveDemandrelevance

Social security expansion boosts hospital demand; BDMS is a top pick with target price 25 baht.

Srivichaivejvivat Public Company Limited

▲ PositiveDemandrelevance

Expansion of social security coverage increases insured patients, and VIH has 26% social security revenue.