Siloam Expansion Drives Upside Potential for SILO Shares

JAKARTA, Investortrust.id — PT Siloam International Hospitals Tbk or SILO accelerates its expansion as improving earnings and efficiency support expectations for medium term growth and potential share price upside.

The hospital operator continued to show solid prospects as aggressive expansion plans aligned with steady financial performance improvements, analysts said.

CGS Sekuritas Indonesia noted that Siloam had consistently opened new hospitals, with plans to add one to two facilities annually supported by a pipeline of 10 new hospital projects.

These projects were expected to begin operations within the next two years and significantly expand the company’s service footprint.

The new hospitals were projected to add around 1,000 beds, equivalent to a potential 24 percent increase in patient volume by 2027.

Analysts said the additional capacity could meaningfully lift utilization rates and healthcare service volumes across the group.

Management also expressed optimism that revenue growth would continue over the next two years as pricing pressure from insurance providers eased.

This trend was seen as opening wider room for operational improvement and margin recovery.

Beyond organic growth, the company was also exploring inorganic expansion opportunities.

Siloam was reviewing about five potential hospital acquisitions, particularly targeting the premium segment to accelerate scale without lengthy construction timelines.

CGS Sekuritas Indonesia said that if realized, such acquisitions could fast track business growth and strengthen the company’s market positioning.

From a financial standpoint, analysts expected Siloam’s fundamentals to improve more visibly from 2027 onward.

Lower debt levels and healthier cash flow were projected to give the company greater flexibility and support higher earnings per share.

Based on disclosure filings, SILO booked net profit of Rp 761.3 billion through the third quarter of 2025, up 19.91 percent from Rp 634.88 billion a year earlier.

Revenue rose 3.31 percent year on year to Rp 9.42 trillion from Rp 9.12 trillion in the same period.

Performance was mainly driven by higher outpatient service revenue, which increased from Rp 4.04 trillion to Rp 4.39 trillion.

Earnings before interest, taxes, depreciation, and amortization climbed 15.5 percent to Rp 2.08 trillion, with margins improving from 25.5 percent to 28.5 percent, reflecting stronger operational efficiency.

In terms of valuation, CGS Sekuritas maintained a target price of Rp 2,300 with a hold recommendation, citing healthy business direction and attractive medium term potential.

Separately, MNC Sekuritas analyst Herditya Wicaksana said SILO shares were in a trading buy phase.

“SILO has support around Rp 2,500 and resistance at Rp 2,580, with a target price range of Rp 2,630 to Rp 2,680,” he said.