Bumrungrad Hospital Public Company Limited (SET: BH) is projected to maintain steady growth from 2024 to 2025. Phillip Securities Thailand Public Company Limited has issued a “buy” recommendation for BH, setting a target price of 223.04 baht per share, citing the hospital’s stability and significant market position.
For 2024, Phillip Securities projected BH to achieve a net profit of 7.20 billion baht, reflecting a modest increase of 2.01% compared to the previous year. By 2025, this figure is anticipated to climb further to 7.40 billion baht, representing a 2.9% growth. The positive outlook is driven by higher service fees aligned with the complexity of treatments and the expansion of service areas. This growth is attributed to the acceleration of core revenue, which is projected to reach 25.13 billion baht, a 2% increase from 2024.
In Q3/2024, foreign patients accounted for 70% of the total, with the largest groups coming from Qatar, Myanmar, and Cambodia, while Thai patients represented 30%.
In addition, analysts have an optimistic outlook on the hospital industry, driven by the increasing number of foreign patients seeking medical services, support from the Social Security Office’s policy to adjust the critical illness compensation rate to 12,000 baht per RW, and the rising morbidity rate, which aligns with the increased aging population in Thailand.
The BH management also expects the number of foreign patients, particularly from Kuwait, to continue utilizing its services due to the expansion of medical tourism and the company’s strategy to assist with customers’ travel in multiple countries. Regarding Kuwaiti patients, the company anticipates being selected as one of the top three hospitals to be the recipient of Kuwaiti patients for treatment in Thailand per the agreement with the Kuwaiti government.
As a result, analysts forecast that in 2025, BH will continue to benefit from its expertise in treating complex diseases, a growing foreign patient base, and its ability to manage costs efficiently. These strengths are reflected in its highest return on equity (ROE) in the industry, which stood at 31.9% as of Q3/2024.
According to sources from BH, the company maintains a positive outlook for its performance in Q4/2024 (excluding holiday periods). This follows the expansion of its medical services and healthcare network. BH’s overall target for 2024 is to surpass its 2023 performance, which generated a total revenue of 25.69 billion baht and a net profit of 7 billion baht. The expected growth is driven by the continued expansion of both domestic and international patient bases. In the first nine months of 2024, BH generated a total revenue of 19.55 billion baht and a net profit of 5.87 billion baht.
