Kiatnakin Optimistic on PR9 as Margin Improvement and Int’l Expansion Boost Growth Prospects

Kiatnakin Phatra Securities (KKPS) expects Praram 9 Hospital Public Company Limited (SET: PR9 ) to post a 2% year-on-year profit growth for 2Q26, reaching THB 186 million. For the quarter, Thai patient revenue is projected to rise by 1% while international patient revenue is set to increase by 6%. However, patient revenue from the Middle East (ME) is expected to grow only 2-3% due to ongoing regional conflict. Non-ME international revenue, primarily from Myanmar and U.S. expatriates, should grow by 8-9%. Total revenue is forecasted to expand by 2% year-on-year. The hospital’s EBITDA margin is anticipated to improve by 1 percentage point year-on-year to 23.5%, primarily due to effective cost control, particularly in marketing expenses. The 2% profit increase marks a turnaround from the 8% year-on-year profit decline experienced in 1Q26. Looking ahead to the second half of the year, KKPS expects stronger revenue growth for PR9. Middle East patient volumes are likely to recover, with increased inquiries from self-paying Kuwaiti patients. Thai patient numbers are also expected to climb, buoyed by more influenza cases and resulting outpatient visits. Additionally, PR9 plans to raise prices for certain medical treatments to counter higher supply costs, supporting margin improvement. For the full year, the brokerage forecasts 4% revenue growth and 3% profit growth. As a result, KKPS maintains a ‘Buy’ rating on PR9, with a target price of THB 24.50 per share, citing expectations of accelerated earnings in 2H26 and ongoing international expansion into Australia and Indonesia. PR9’s current valuation stands at 17x 2026 P/E, well below the global peer average of 32x, underlining its attractive position in the sector.