Hospital stocks 2568: Which ones are worth holding for the long term?

Who is looking for safe stocks during volatile markets? Hospital stocks are considered a sought-after option. Why? Because healthcare is an essential need that doesn’t discriminate, and market risks can’t stop people from getting sick. Let’s look at the 7 main stocks to see which hospitals are worth investing in this year.

Know the basics before investing in hospital stocks

Before choosing which hospital stocks to buy, investors should focus on these three key points:

1. What are the main customers of the hospital?

Take a good look at which revenue streams the hospital primarily depends on. Some hospitals mainly serve international patients (like BH, BDMS, BCH), while others focus mainly on Thai patients (VIBHA, CHG, PR9, THG). Choosing incorrectly could expose you to unforeseen risks. For example, if a hospital relies heavily on European international patients and the economy there falters, it could directly impact income.

2. Check the financial figures to see which are stronger

PE (Price-to-Earnings ratio) and ROE (Return on Equity) are two key tools that best tell the story of hospital stocks. PE indicates how much you’re paying for one baht of profit, while ROE shows how well the hospital uses shareholders’ funds. A high ROE indicates good profit generation, but it should be considered alongside PE—don’t rely on just one metric.

3. How will the hospital grow?

Some hospitals acquire others, some expand branches, and some target specific customer groups. Which approach suits you? If you plan to hold long-term, some strategies may yield better results, while others might require waiting longer for profits.

The 7 main hospital stocks to watch in 2025

BH: The true safe hospital stock

The giant of Thai hospital stocks, BH, is a noteworthy contender because it has an ROE of 31.91%, indicating excellent profitability. Its operational history since 1984 demonstrates unmatched stability.

A key strength of BH is its diversified revenue streams: 66.52% from general patients and 32.63% from social security. This confirms a solid customer base. BH also plans to adjust service prices for complex cases and expand services for international clients. With a market value of 139,110 million Baht, it is a long-term holding candidate.

BDMS: Playing the middle ground

BDMS has the largest market cap at 355,981 million Baht, showing high market confidence. It has an ROE of 16.77%, not as high as BH but still attractive.

What’s interesting is that BDMS generates 67% of its revenue from abroad, making it a prime example of international business. Besides hospitals, BDMS also operates medical centers in the US, Myanmar, and Mongolia. With experience since 1975, its plans to expand patient beds and open new branches are ongoing.

BCH: The playful newcomer

Although smaller than BH and BDMS, BCH is intriguing. Notably, analysts recently upgraded their recommendation from “Hold” to “Buy.”

Founded in 1969, BCH owns 15 hospitals. For 2025, profit is expected to grow 23% year-over-year. Domestic patients account for 71%, international 29%, indicating a more balanced customer base.

CHG: Domestic market focus

CHG has an ROE of 15.42% and a P/E of 20.32, which are moderate. It mainly serves Thai patients: outpatient 30.6%, inpatient 34.5%, social security 35%. This makes it a safe, reliable choice. The hospital continues to expand branches and increase patient capacity, reflecting quarterly growth planning.

PR9: Long-term profit holder

Founded in 1989, PR9 targets both Thai and international clients equally. Outpatients make up 59%, inpatients 41%. Its health insurance customer base accounts for 25%, self-paying 68%, and contracted clients 7%.

PR9 stands out for investing in technology and developing the (9CARE) platform. It’s not stuck in old ways. With an ROE of 13.57%, it’s moderate but suitable for those seeking steady growth.

VIBHA: Small but stable

VIBHA has the lowest ROE at 8.49%, but it has other notable aspects. Analysts from Untha recently issued a “Buy” recommendation with a target price of 2.74 Baht. It seems the market expects VIBHA to perform strongly this year.

This optimism is partly due to easing social security issues and new business initiatives. VIBHA has 1,722 outpatient and inpatient beds, with 45% outpatient and 55% inpatient.

THG: Cautiously optimistic

THG has a negative ROE of -6.91%, indicating problems. Currently, there are allegations regarding management. Its stock price has recovered somewhat, but some analysts believe it may decline further.

If you prefer hospital businesses, it’s advisable to skip this one until the situation clarifies.

What to consider when investing in hospital stocks?

The hospital business remains attractive due to an aging population and increasing demand for medical services. Ultimately, healthcare is a life necessity, making hospital stocks generally safer than others. During market downturns, hospital stocks tend not to fall sharply; in normal markets, they don’t rise rapidly either.

However, careful selection is essential. Study the stock price, customer base, expansion strategy, and financial strength. The hospital’s fundamentals are crucial. Review analyst opinions and annual profits before making decisions.

In short: If you want safe stocks to hold long-term, BH and BDMS are solid choices. For smaller stocks with potential, CHG and PR9 are good options. Don’t miss VIBHA, which seems poised for growth. THG, however, requires patience and caution.