Reading between the lines in the 2Q26 Management Discussion and Analysis of Patrangsit Healthcare Group Public Company Limited (PHG): Revenue down 3.7%. Net profit down 47.1%. And tax expense of Bt3m on Bt49m of profit before tax.
The numbers
Self-pay patients pull revenue lower
Patrangsit Healthcare Group, based in Pathum Thani, runs PatRangsit Hospital, PatRangsit 2 Hospital and a specialized mother and child hospital. In 2Q26, revenue from hospital operations fell 3.7% YoY to Bt601m, primarily on lower inpatient revenue; bed occupancy fell to 62.0% from 69.1%. Self-pay revenue fell 8.2% YoY, with general customers down 15.8%. Government welfare programs grew 1.1% and now account for 50.3% of revenue.
Costs rise as revenue falls
Gross margin fell to 19.4% in 2Q26 from 26.2% in 2Q25. Cost of hospital operations rose 5.1% YoY, which the MD&A attributes to higher staff compensation and medical supply costs, citing government welfare patient volume and the annual salary adjustment. Administrative expenses rose 13.4% YoY to Bt69m, and other income fell to Bt5m from Bt13m. Net profit fell 47.1% YoY to Bt46m, a net margin of 7.6% against 13.9%.
Financial assets fall, cash rises, equity declines
Other current financial assets fell to Bt475m at end-2Q26 from Bt867m at end-1Q26, while cash rose to Bt517m from Bt363m. Total assets fell to Bt2,493m from Bt2,689m and total liabilities to Bt404m from Bt435m. Total equity fell to Bt2,089m from Bt2,253m, with retained earnings and legal reserve at Bt640m, down from Bt835m.
What the numbers don’t show
Comparing the 2Q26 MD&A with 1Q26, a couple of things stand out.
Tax expense of Bt3m on Bt49m of profit before tax
In 1Q26, tax expense was Bt11m on profit before tax of Bt56m. In 2Q26, tax expense was Bt3m on profit before tax of Bt49m, against Bt22m on Bt109m in 2Q25. Net profit was Bt46m in 2Q26, compared with Bt45m in 1Q26.
For 6M26, tax expense was Bt14m on profit before tax of Bt104m, against Bt42m on Bt207m in 6M25. The 2Q26 MD&A links the decline in net profit to lower revenue and higher costs. Neither filing discusses tax expense.
A 1Q26 cost driver is absent from the six-month explanation
The 1Q26 MD&A attributed a Bt13m rise in administrative expenses to the salary adjustment and a loss on changes in the fair value of investments. The 2Q26 MD&A explains the quarter’s Bt8m increase by the salary adjustment alone. For the six months, it explains a Bt21m increase through salary adjustments and higher depreciation, which neither of the quarterly explanations names.
The fair-value loss is not mentioned, and neither filing quantifies it. Administrative expenses were Bt76m in 1Q26 and Bt69m in 2Q26, against Bt63m and Bt61m a year earlier.