Recently, I've noticed many people asking how to choose hospital stocks, and honestly, these types of stocks are indeed worth paying attention to. Why? Because they are classic defensive stocks, which can remain stable and profitable even during tough economic times.

I took a close look at the major listed hospital companies in Thailand, and there are about seven that are worth keeping an eye on. This year, although these hospital stocks have experienced some volatility, many have maintained good performance.

Let's start with the two largest ones. BDMS (Bangkok Dusit Medical Services) is the largest in market value, with 31.9 billion Thai Baht, and the current stock price is 20 baht. This hospital not only has multiple branches in Thailand but also operates in Mongolia and Myanmar. Its ROE reaches 16.8%, and the P/E ratio is 19.5 times. BH (Bumrungrad International Hospital) has a market value of 13.5 billion, with a stock price of 167.5 baht, but its ROE is particularly high at 31.9%, mainly because they have a very high proportion of foreign patients, which allows for faster earnings.

BCH (Bangkok Chain Hospital) has a market value of 2.5 billion and a stock price of 10.2 baht, mainly serving local patients and social security clients. Recently, brokerage firms upgraded them from "Hold" to "Buy," expecting net profit to grow by 23% in 2025. This stock is relatively cheaper.

There are also several small- and medium-sized hospital stocks that are quite interesting. RAM (Ramkhamhaeng Hospital), although with a somewhat high P/E ratio (33.41 times), is particularly strong in specialized treatments such as cardiology, neurology, and orthopedics. VIBHA (Vibhavadi Hospital) has a stock price of only 1.88 baht, and analysts are optimistic about their growth potential this year, setting a target price of 2.74 baht. CHG (Chularat Hospital) and PR9 (Rama 9 Hospital) are also expanding, focusing respectively on local cash-paying customers and medical tourism.

When choosing hospital stocks, I look at a few points. First, understand who mainly makes money for the hospital—foreign patients or local patients? Because this directly affects risk. For example, BDMS and BH, which rely heavily on foreign patients, need to pay attention to the international economic situation. Second, look at financial ratios; P/E and ROE are very important. A very high P/E indicates the stock price has already surged significantly, and a high ROE shows the hospital uses its capital very efficiently. Third, observe their growth strategies—are they expanding by opening new hospitals, through mergers and acquisitions, or specializing in certain fields?

Why are hospital stocks so stable? Simply put, people will always get sick, and healthcare services are essential needs. Plus, Thailand’s aging trend is becoming more obvious, and new diseases are emerging, which are long-term drivers for hospital business. Once a hospital is built, it generates a continuous cash flow, unlike real estate, which requires constantly building new properties.

The downside of these stocks is that their growth potential isn’t extremely rapid; they are considered steady growth assets. If you’re looking for short-term explosive gains, they might not be suitable. But if you want to add some stable, defensive assets to your investment portfolio, hospital stocks are indeed a good choice. The key is to spend time researching each hospital’s characteristics and financial health carefully, rather than blindly following trends.