I've just noticed that more people are starting to show interest in buying hospital stocks this year, and honestly, it makes sense because this business is considered safe and provides steady income, unlike other stocks that fluctuate wildly.

What’s interesting is that although hospital stocks rose significantly last year, they have adjusted downward this year, with some dropping quite a bit. However, there are still top-tier stocks that remain strong. If you know which ones to pick, you can identify good entry points.

Let's take a look at the 7 stocks I’m tracking and see what’s interesting about them.

Starting with the heavyweight BDMS, which has the largest market cap in the group, around 319 billion baht. The stock price is 20 baht, P/E ratio about 19.5 times, and ROE 16.8%. This one is strong because it owns a network of hospitals both domestically and internationally, with plans to expand further. So, if you're interested in a stable and established hospital stock, this one is worth considering.

Next, BH mainly focuses on foreign customers. Its market cap is about 135 billion baht, with a price of 167.50 baht, P/E 19.3 times, but an impressive ROE of 31.9%, indicating efficient use of capital. This stock is good if you believe medical tourism will grow.

BCH, with a market cap of 25 billion baht and a price of 10.20 baht, is also interesting. It owns 15 hospitals. P/E ratio is 19.7 times, ROE around 11-12%. This might be more suitable if you have less capital to invest because the stock price is lower.

RAM, located on Ramkhamhaeng Road in a densely populated area, is known for specialized medical services. Its price is 18.20 baht, with a very high P/E of 33.41 times, but ROE is only 3.38%. This indicates that the stock price is high, and you might want to wait until the company improves profitability before investing.

If you prefer low-priced stocks, VIBHA and CHG are options. VIBHA costs 1.88 baht, with a market cap of 18 billion baht, P/E 47.6 times. Analysts at Unta recommend buying it, expecting a bright outlook for 2025. CHG is priced at 1.50 baht, with 65-70% cash-paying customers. This one is better if you believe the domestic economy will improve.

Finally, PR9, priced between 18.7 and 18.9 baht, with a market cap of 14 billion baht, P/E 18.4 times, and ROE 14%. It has plans to develop digital platforms like 9 CARE, which could be a future highlight.

Now, the question is, which one should you choose? First, you need to consider which customer group the hospital targets. If it’s foreigners, keep an eye on the international economic conditions. If it’s Thai customers, watch the domestic economy.

Second, study the P/E and ROE carefully. A low P/E suggests the stock isn’t expensive, and a high ROE indicates efficient capital use. Low P/E combined with high ROE is a good sign. Conversely, high P/E and low ROE could mean the stock is overvalued.

Third, examine each hospital’s growth strategy. Some grow through mergers and acquisitions, others expand branches, and some focus on specialized niches. Understanding their strategies helps you buy at the right timing.

Why are hospital stocks attractive? Because they are defensive stocks that don’t fluctuate wildly like others, providing consistent income. In an aging society, demand for medical services will keep increasing. Investing in hospital stocks is essentially investing in a fundamental societal need.

However, before buying hospital stocks, you should do further research, analyze fundamentals, review financial reports, and if unsure, seek advice from experienced analysts.

For me, hospital stocks are suitable for long-term holding because they offer steady returns and are less affected by market volatility. If you’re looking for safe stocks with continuous income, consider one of the stocks I mentioned.