Hospital stock investments: Why they are a safe option for investors to consider in 2025

Why Healthcare Stocks Attract Investors

In a constantly changing economy, investing in medical service companies has become a destination for investors seeking stability and continuous income. These companies are considered Defensive Stocks, meaning they naturally resist market volatility.

The source of this stability is clear: medical services are essential in life and do not depend on economic conditions. Whether the market is booming or declining, the demand for healthcare remains steady, resulting in predictable and stable revenue streams for hospitals. Additionally, the aging society and the rise of various diseases continue to drive the expansion of this industry.

Insights from the Data: Which Hospital Provides the Highest Returns

The Thai stock market in 2025 has seen prominent performance from healthcare companies, even amid overall market volatility. Below is an analysis of the top 7 companies in this sector with the highest experience:

Comparison table of 7 hospital stocks from 2025 analysis

BH (Bumrungrad@: The Leader with Outstanding ROE

Bumrungrad Hospital stands out as the leader in shareholder returns with an ROE of 31.91%, the highest in the group, demonstrating efficient capital utilization.

This healthcare institution has developed a diverse revenue system, with 66.52% from general patients, approximately 32.63% from social security scheme patients, and 0.85% from other supplementary income. BH has established itself as a leading provider for social security insured individuals.

Net profit for BH is 5,871.77 million Baht, slightly less than BDMS, but achieved with a smaller capital base. This indicates excellent management efficiency.

) BDMS ###Bangkok Dusit Medical: Market Value Leader

In terms of size, BDMS surpasses others with a market value of 355,980.84 million Baht, and its net revenue reaches 11,654.41 million Baht.

Significantly, BDMS has driven a portion of its revenue from medical tourism, with 67% from international patients compared to 33% from domestic markets. This allows the company to benefit from the growing travel industry and high-quality medical services demanded by global health tourists.

However, reliance on international markets is a double-edged sword. During periods when global air travel stalls, such as during COVID-19, the company has been significantly affected.

( BCH )Bangkok Chain Hospital ###: 15 Branches Nationwide

BCH owns the largest network among major players, with 15 hospitals and 2 polyclinics, spanning Bangkok, various provinces, and even Laos.

This year, BCH received upgraded recommendations from analysts or financial institutions, predicting a 23% increase in net profit in 2025 compared to the previous year. Revenue is expected to surge mainly from domestic patients, with 71% from local patients and 29% from international patients.

This indicates BCH’s success in building trust among Thai people to choose their services.

( CHG )Chularat (: Stable in a Limited Area

Chularat Hospital operates steadily through 12 subsidiaries and 15 branches. Its revenue is diversified: outpatient 30.6%, inpatient 34.5%, and social security scheme 35%.

The current stock price of 2.24 Baht per share makes CHG an accessible option for general investors. Additionally, an ROE of 15.42% reflects effective capital management.

) PR9 (Praram 9 ): Digital Frontline of Healthcare Services

Praram 9 Hospital positions itself as a pioneer in digital platforms, such as the 9 CARE platform and 9 CARE Shop, supporting remote healthcare.

PR9’s revenue channels focus more on outpatient services, accounting for 59%, compared to 41% from inpatient services. A key customer base includes 68% insured individuals, indicating a stable and purchasing power-rich clientele.

VIBHA (Vibhavadi ): Prominent in Public Accessibility

Vibhavadi Hospital is committed to serving the middle class of Thai society, with 1,722 beds across Bangkok, various provinces, and abroad.

Analysts suggest that VIBHA has a high potential for growth in 2025 due to easing concerns over social security and expanding new business ventures. The target price is set at 2.74 Baht.

THG (Thonburi ): Stocks to Watch Closely

Thonburi Healthcare Group has concerns that lead to a negative ROE of -6.91%, making it a stock requiring further study. Investors should monitor the company’s developments closely.

How to Select the Right Hospital Stocks

( Step 1: Target Customer Profile

Hospitals are divided into two main groups based on their customer base:

Foreign Patient-Focused Group: BH, BDMS, BCH have built a reputation in medical tourism, with most income coming from abroad. For this group, it’s essential to monitor the global economic situation, especially the target countries.

Domestic Customer-Focused Group: CHG, PR9, VIBHA, THG have Thai customers, so their performance depends on the domestic demand growth and social security policies.

) Step 2: Financial Ratio Analysis

P/E Ratio: Indicates investment value. A lower P/E may suggest undervaluation, but sometimes a low P/E results from underlying company issues.

ROE (Return on Equity): Shows how well the company manages shareholders’ equity. A higher ROE, like BH’s 31.91%, indicates skilled management. For expanding hospitals, an increasing ROE in the future can be expected.

( Step 3: Growth Strategies

Mergers and Acquisitions: Companies growing through buying and renovating branches may deliver quick results but require careful integration.

New Branch Expansion: Building new facilities in strategic locations may yield slower returns due to depreciation and infrastructure costs.

Medical Specializations: Companies targeting specific niches, such as fertility or weight-loss surgeries, may grow at higher rates.

Summary: Choose According to Your Goals

Investing in hospital stocks is akin to planting money in essential life needs—providing a solid foundation for long-term portfolio growth. If you seek steady income and risk reduction, consider companies with a stable domestic customer base.

If you are willing to accept volatility for higher gains, you can allocate funds to hospitals focused on medical tourism.

Regardless of your choice, always conduct thorough research and consult industry experts before making investment decisions. The safest investments are those made with well-informed data.