Company Coverage
Bumrungrad Hospital (BH TB): Decent Earnings Expected In 2Q26
BUY (Maintained)
Current price:
Target price:
Upside:
Bt184.00
Bt236.00
+28.30%
Analyst
Analyst
Nonpawit Vathanadachakul
Highlights
- BH is expected to report a decent earnings growth of 1.4% yoy, with net profit to come in at Bt1.88b in 2Q26 despite the situation in the Middle East.
- We continue to see air connectivity of Middle East airlines improving strongly especially in Jun 26, which has already exceeded the pre-war level.
- We maintain BH as one of our top picks as we are optimistic on the recovery of Middle Eastern patient arrivals during the peak season in 3Q26. The outlook for BH in 2H26 remains positive. Maintain BUY with a target price of Bt236.00.
Analysis
- Decent earnings growth expected in 2Q26. Bumrungrad Hospital (BH) should report a net profit of Bt1.88b (+1.4% yoy, +5.2% qoq) in 2Q26. We expect 2Q26’s top-line to be at Bt6.1b (+2.3% yoy, -1.0% qoq), exhibiting a decent growth despite several pressuring factors. Although Middle Eastern patient traffic remained weak in Apr 26 as flights had not fully resumed, the significantly stronger recovery in flights from May 26 onwards should support a corresponding recovery in Middle Eastern patient traffic. We expect a slight decline in gross margin, in line with the lower proportion of Middle Eastern patients, who are a high-margin patient segment. However, we expect BH to be active in implementing cost-saving measures (ie reducing SG&A expenses) to mitigate the margin decline. Hence, we expect margins to drop slightly yoy in 2Q26.
Highlights
- BH is expected to report a decent earnings growth of 1.4% yoy, with net profit to come in at Bt1.88b in 2Q26 despite the situation in the Middle East.
- We continue to see air connectivity of Middle East airlines improving strongly especially in Jun 26, which has already exceeded the pre-war level.
- We maintain BH as one of our top picks as we are optimistic on the recovery of Middle Eastern patient arrivals during the peak season in 3Q26. The outlook for BH in 2H26 remains positive. Maintain BUY with a target price of Bt236.00.
Analysis
- Decent earnings growth expected in 2Q26. Bumrungrad Hospital (BH) should report a net profit of Bt1.88b (+1.4% yoy, +5.2% qoq) in 2Q26. We expect 2Q26’s top-line to be at Bt6.1b (+2.3% yoy, -1.0% qoq), exhibiting a decent growth despite several pressuring factors. Although Middle Eastern patient traffic remained weak in Apr 26 as flights had not fully resumed, the significantly stronger recovery in flights from May 26 onwards should support a corresponding recovery in Middle Eastern patient traffic. We expect a slight decline in gross margin, in line with the lower proportion of Middle Eastern patients, who are a high-margin patient segment. However, we expect BH to be active in implementing cost-saving measures (ie reducing SG&A expenses) to mitigate the margin decline. Hence, we expect margins to drop slightly yoy in 2Q26.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt184.00
Bt236.00
+28.30%
Analyst
Analyst
Nonpawit Vathanadachakul
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