Initiation of coverage
Praram 9 Hospital (PR9 TB): Strong Upside Awaits
BUY
Current price:
Target price:
Upside:
Bt16.90
Bt24.60
+45.6%
Analyst
Analyst
Nonpawit Vathanadachakul
Highlights
- PR9 has a strong earnings upside from 2Q26 onwards, starting from the recognition of medical supply cost in 1Q26 due to stocking up ahead of the war.
- PR9 offers niche products and services at unique price points, which could attract new patients and contribute strongly to earnings growth.
- Initiate coverage with a BUY recommendation and a target price of Bt24.60.
Analysis
- Middle East patient volumes recovered swiftly. The Middle East conflict temporarily disrupted patient travel in early-Mar 26, but patient volumes recovered following the ceasefire and normalised by Jun 26 as airline connectivity resumed. This leaves Praram 9 Hospital (PR9) ready for the peak Middle East patient season in 3Q26.
- Well positioned in budget-premium segment. As PR9 offers complex tertiary care comparable to that of Bumrungrad Hospital and Bangkok Dusit Medical Services at 20-30% lower prices, it is set to benefit as Middle East governments tighten Guarantee of Payment budgets. Kuwait presents a key growth opportunity following reforms that prioritise cost-effective healthcare providers. We believe PR9 is well placed to secure future referrals.
- Niche specialty offerings. PR9 is recognised for its expertise in diabetic wound care and kidney transplant, making it Middle East patients’ preferred care provider. The hospital continues to strengthen its capabilities through investments in advanced technologies, including the Da Vinci robotic surgical system introduced in 1Q26, to expand its portfolio of complex treatments.
- Valuation. We recommend BUY with a target price of Bt24.60. Our valuation for PR9 is rolled over to 2027, based on an EV/EBITDA of 12.0x (the five-year historical mean). We see several supporting factors for PR9’s strong core business and the earnings outlook from 2Q26 onwards looks rosy. Hence, we are optimistic about PR9’s earnings outlook, especially during the peak Middle East patient season in 3Q26.
Highlights
- PR9 has a strong earnings upside from 2Q26 onwards, starting from the recognition of medical supply cost in 1Q26 due to stocking up ahead of the war.
- PR9 offers niche products and services at unique price points, which could attract new patients and contribute strongly to earnings growth.
- Initiate coverage with a BUY recommendation and a target price of Bt24.60.
Analysis
- Middle East patient volumes recovered swiftly. The Middle East conflict temporarily disrupted patient travel in early-Mar 26, but patient volumes recovered following the ceasefire and normalised by Jun 26 as airline connectivity resumed. This leaves Praram 9 Hospital (PR9) ready for the peak Middle East patient season in 3Q26.
- Well positioned in budget-premium segment. As PR9 offers complex tertiary care comparable to that of Bumrungrad Hospital and Bangkok Dusit Medical Services at 20-30% lower prices, it is set to benefit as Middle East governments tighten Guarantee of Payment budgets. Kuwait presents a key growth opportunity following reforms that prioritise cost-effective healthcare providers. We believe PR9 is well placed to secure future referrals.
- Niche specialty offerings. PR9 is recognised for its expertise in diabetic wound care and kidney transplant, making it Middle East patients’ preferred care provider. The hospital continues to strengthen its capabilities through investments in advanced technologies, including the Da Vinci robotic surgical system introduced in 1Q26, to expand its portfolio of complex treatments.
- Valuation. We recommend BUY with a target price of Bt24.60. Our valuation for PR9 is rolled over to 2027, based on an EV/EBITDA of 12.0x (the five-year historical mean). We see several supporting factors for PR9’s strong core business and the earnings outlook from 2Q26 onwards looks rosy. Hence, we are optimistic about PR9’s earnings outlook, especially during the peak Middle East patient season in 3Q26.
BUY
Current price:
Target price:
Upside:
Bt16.90
Bt24.60
+45.6%
Analyst
Analyst
Nonpawit Vathanadachakul
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