Company Coverage
Bangkok Chain Hospital (BCH TB): Strong 3Q26 Outlook, Supported By Both Organic And Inorganic Growth
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt11.40
Bt13.00
+14.0%
Bt14.00
Analyst
Analyst
Nonpawit Vathanadachakul
Highlights
- We attended BCH’s analyst meeting and the tone was positive, with a promising update on its strong performance in Jul 26.
- The 3Q26 outlook will be enhanced by the epidemic which led to a robust growth in Thai patient revenue in Jul 26.
- We view the latest acquisition of KIH Ubon as a good addition to BCH’s portfolio. Meanwhile, we continue to receive positive updates for the SSO treatment price increase. Maintain BUY with a target price of Bt13.00 (previously Bt14.00).
Analysis
Positive tone at the analyst meeting. We attended Bangkok Chain Hospital’s (BCH) analyst meeting to review its 2Q26 results and the tone was positive.
Upside from new acquisition at Ubon Ratchathani. BCH has reached an agreement to purchase a new asset, the private hospital at Ubon Ratchathani with a capex not exceeding Bt490m. The hospital will undergo a brand renovation and will start operating once again in the beginning of Sep 26. This Kasemrad International Hospital Ubon Ratchathani (KIH Ubon) will serve as a key link to BCH’s network as it is located in a strategically strong location. All of the patients at this hospital are self-pay patients, contributing to an annual revenue of around Bt188m at KIH Ubon. Management sees growth potential at KIH Ubon as there is room to increase the treatment price to match other Kasemrad hospitals and there are several cost saving measures that can be done to improve the net profit margin. We see this deal as a good addition to BCH’s portfolio as KIH Ubon enhances BCH’s operation in the key strategic location near the border of Laos and Cambodia.
Update on SSO treatment fee increase. The Social Security Office (SSO) has raised the wage ceiling effective from 2026, strengthening the case for an increase in treatment fees. According to management, in the first meeting with SSO officials, SSO acknowledged that higher treatment fees would be reasonable. The SSO is scheduled to hold its next meeting on 7 Sep 26 to consider the range of treatment fee increases, with the absolute deadline in late-Oct 26. We believe the most likely adjustment would be to the base capitation rate, which could increase by around 10% to offset rising medical inflation. This 10% increase from basic capitation is based on the previous increase from four years ago.
Highlights
- We attended BCH’s analyst meeting and the tone was positive, with a promising update on its strong performance in Jul 26.
- The 3Q26 outlook will be enhanced by the epidemic which led to a robust growth in Thai patient revenue in Jul 26.
- We view the latest acquisition of KIH Ubon as a good addition to BCH’s portfolio. Meanwhile, we continue to receive positive updates for the SSO treatment price increase. Maintain BUY with a target price of Bt13.00 (previously Bt14.00).
Analysis
Positive tone at the analyst meeting. We attended Bangkok Chain Hospital’s (BCH) analyst meeting to review its 2Q26 results and the tone was positive.
Upside from new acquisition at Ubon Ratchathani. BCH has reached an agreement to purchase a new asset, the private hospital at Ubon Ratchathani with a capex not exceeding Bt490m. The hospital will undergo a brand renovation and will start operating once again in the beginning of Sep 26. This Kasemrad International Hospital Ubon Ratchathani (KIH Ubon) will serve as a key link to BCH’s network as it is located in a strategically strong location. All of the patients at this hospital are self-pay patients, contributing to an annual revenue of around Bt188m at KIH Ubon. Management sees growth potential at KIH Ubon as there is room to increase the treatment price to match other Kasemrad hospitals and there are several cost saving measures that can be done to improve the net profit margin. We see this deal as a good addition to BCH’s portfolio as KIH Ubon enhances BCH’s operation in the key strategic location near the border of Laos and Cambodia.
Update on SSO treatment fee increase. The Social Security Office (SSO) has raised the wage ceiling effective from 2026, strengthening the case for an increase in treatment fees. According to management, in the first meeting with SSO officials, SSO acknowledged that higher treatment fees would be reasonable. The SSO is scheduled to hold its next meeting on 7 Sep 26 to consider the range of treatment fee increases, with the absolute deadline in late-Oct 26. We believe the most likely adjustment would be to the base capitation rate, which could increase by around 10% to offset rising medical inflation. This 10% increase from basic capitation is based on the previous increase from four years ago.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt11.40
Bt13.00
+14.0%
Bt14.00
Analyst
Analyst
Nonpawit Vathanadachakul
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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