I just noticed that hospital stocks in the Thai market are seeing some interesting changes lately. Last year (2568), this sector delivered fairly solid returns, but with the Year of the Fire Horse coming in, many hospital stocks began to adjust lower. That said, there are still a few that are worth keeping an eye on, so I’d like to share my experience in selecting hospital stocks that fit a long-term investment portfolio.

First, it’s important to understand that hospital stocks are not the kind you buy just to follow price momentum or hype. They’re Defensive Stocks that provide steady income. Health-related businesses are necessary no matter what the economy is like. Because of that, this sector generally carries lower risk than other stock groups.

When you look more closely, each hospital stock has different management characteristics. Some focus primarily on international customers—for example, BDMS (Bangkok Dusit Medical Services), with a Market Cap of 319,430 million baht, a stock price of 20.00 baht, a P/E of 19.5x, and an ROE of 16.8%. This company has hospital networks both in Thailand and overseas. Another example is BH (Bumrungrad Hospital), with a Market Cap of 135,060 million baht, a stock price of 167.50 baht, a P/E of 19.3x, and an ROE of 31.9%, which is very high. This hospital is extremely popular among international patients.

The second group is hospital stocks that focus more on domestic customers, such as VIBHA (Vibhavadi), with a Market Cap of 18,470 million baht, a price of 1.88 baht, and a P/E of 47.6x. Analysts see the outlook for 2568 as positive because concerns about social security are easing. Another is CHG (Chularat), with a Market Cap of 17,270 million baht and a price of 1.50 baht. This company relies on cash-paying patients for roughly 65–70% of its revenue.

Another interesting stock is BCH (Bangkok Chain Hospital), with a Market Cap of 25,190 million baht, a price of 10.20 baht, and a P/E of 19.7x. Krungsri Securities has recently upgraded its recommendation to “Buy” from “Hold,” and it expects net profit in 2568 to grow by as much as 23%. RAM (Ramkhamhaeng Hospital) is also worth tracking, with a Market Cap of 21,720 million baht and a price of 18.20 baht. Even though its ROE is low (3.38%), its P/E is 33.41x, suggesting that the market believes it has growth potential.

When it comes to choosing hospital stocks, you need to consider multiple dimensions. First, you must understand who the main customers of each hospital are, because that will determine both risk and growth opportunities. Hospitals that cater to international patients also need to monitor the economic conditions of those countries. Second, you should analyze the PE and ROE ratios carefully. A reasonable PE helps you judge whether the stock price is worthwhile, while a high ROE indicates that the company uses shareholders’ capital efficiently.

Third, you should look at each hospital’s growth strategy. Some grow quickly by pursuing mergers and acquisitions, some expand by opening new branches in strategic areas, and some focus on specific niche expertise—for example, PR9 (Rama 9), with a Market Cap of 14,940 million baht and a price range of 18.7–18.9 baht, which invests in modern medical equipment and develops digital platforms.

For investors who want hospital stocks with steady income and lower risk, all of these seven stocks have potential. However, you still need to choose based on your investment goals and the level of risk you’re willing to accept. If you want higher safety, BDMS or BH may be good options. If you’re looking for higher growth opportunities, you could look at VIBHA or CHG, which still have a lot of room to expand. The key is to study the information in detail, analyze based on fundamentals, and invest for the long term—because this sector is not suitable for short-term trading, but it is well-suited for accumulating wealth in your investment portfolio.