Equity Analysis /

Thailand: Healthcare - How to position in Healthcare for 2H22

  • 2H22 Healthcare strategy—prefer big-caps

  • BDMS or BH? Which stock will outperform most in 2Q22?

  • Strong foreign arrival growth, especially from the Middle East

Bualuang Securities
28 June 2022

The Healthcare sector has typically outperformed during periods of high inflation. We prefer BDMS and BH, as the downside risks to their respective core profit profiles are modest. Moreover, arrivals from the Middle East (the key fly-in market) are rising. On Jul 1 we will host a Thai Corporate Day. Executives from BDMS and BH will speak at our event. BH is our top pick in Healthcare space.

2H22 Healthcare strategy—prefer big-caps

Within the sector, we lean toward big-caps, as they are more defensive in nature, so the downside risk to their earnings profiles is modest. During this period of high inflation, we think Healthcare's defensive properties will outweigh policy concerns, driving relative performance.