JAKARTA – BRI Danareksa has lowered its target price for shares of PT Siloam International Hospitals Tbk (SILO), although it maintains a “buy” rating for the hospital operator.
This target price reduction is accompanied by a downward revision of BRI Danareksa’s projections for SILO’s revenue and net profit for the current year.
In its research note released on Friday, August 22, 2025, BRI Danareksa set a “buy” recommendation with a target price of Rp2,600 per share for SILO, down from its previous estimate of Rp2,850.
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However, this target price still reflects a potential return of approximately 20.93% from SILO’s share price at the close of trading last week.
On Friday, August 22, 2025, SILO’s share price increased by 0.94% to Rp2,150 per share. Nevertheless, the stock price still reflects a correction of 33.64% year-to-date (YtD).
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Despite the year-to-date correction in 2025, BRI Danareksa Sekuritas analysts continue to view Siloam as having stable fundamental performance. This is supported by SILO’s efforts to increase revenue through investments in cutting-edge medical equipment, the ability to recruit subspecialist doctors, and a strong mix of private patients.
BRI Danareksa Sekuritas analysts Ismail Fakhri and Wilastita Muthia noted that SILO has achieved 42% of their full-year 2025 net profit estimate of Rp1.1 trillion.
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According to the analysts, SILO’s inability to reach half of their full-year prediction for 2025 aligns with SILO’s revenue, which only grew 2% year-on-year (YoY).
The analysts attribute the 2% revenue growth primarily to a slowdown in inpatient volume by 7% YoY and a marginal increase in outpatient volume of only 2% YoY. They believe this is due to fewer working days in the first half of 2025.
Despite the decrease in patient volume, the analysts point out that revenue from both inpatient and outpatient services grew by 3% and 8% annually, respectively, supported by better contributions from out-of-pocket patients.
Siloam recorded 151,489 inpatient admissions in the first half of 2025, a decrease of 7.7% YoY. However, outpatient visits remained stable at over 2.08 million.
Conversely, SILO’s revenue from the BPJS (Social Security Agency) segment weakened by 4% YoY, while private and corporate insurance remained stagnant.
“SILO’s volume was also impacted by the decision to terminate several insurance partnerships due to unsustainable receivables and high discount requests,” said Ismail and Wilastita.
Based on Siloam’s performance in the first half of 2025, BRI Danareksa has reduced its revenue and profit targets for SILO in 2025 by 7% and 14%, respectively. This implies revenue growth of 3% YoY, which is lower than SILO management’s target of 5%–10% YoY.
The analysts stated that the reduction is due to BRI Danareksa’s cautious outlook on SILO’s volume in the second half of 2025.
“This is despite the potential improvement in private insurance revenue, as management noted that initial discussions with private insurance parties indicate that the growth in claims ratios is now slowing to single-digit YoY compared to high double-digit last year,” they said.
SILO’s Financial Performance in H1 2025
In the January-June 2025 period, SILO recorded revenue of Rp6.10 trillion, an increase of 1.46% YoY.
Among Siloam’s 17 hospitals across Indonesia, the largest contribution came from Siloam MRCCC Semanggi Hospital, which generated revenue of Rp776.40 billion in the January-June 2025 period. This cancer treatment-focused hospital achieved growth, increasing by 0.13% YoY from Rp775.37 billion in the same period of 2024.
Meanwhile, Siloam Lippo Village Hospital experienced a decrease in revenue, recording only Rp700.22 billion in the first half of 2025, down from Rp702.14 billion in the same period of 2024.
Along with the increase in Siloam’s revenue, the company also recorded an increase in the cost of revenue to Rp3.80 trillion in the January-June 2025 period, up from Rp3.65 trillion in the same period of 2024.
As a result, Siloam recorded a gross profit of Rp2.30 trillion in this period, down from Rp2.36 trillion in the same period of 2024. However, Siloam’s tax expense decreased to only Rp165.31 billion in the first half of 2025.
This enabled Siloam to record growth in profit for the period attributable to owners of the parent entity, or net profit, of Rp456.82 billion in the first half of 2025. SILO’s net profit soared 45.35% YoY from Rp314.28 billion in the same period of 2024.
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Summary
BRI Danareksa has revised its target price for Siloam (SILO) shares downward to Rp2,600 from Rp2,850, while maintaining a “buy” rating. This adjustment reflects a reduction in projected revenue and net profit for 2025. Despite the lowered target, it still indicates a potential return of approximately 20.93% based on the recent share price.
The revision stems from slower than expected revenue growth in the first half of 2025, primarily due to a decrease in inpatient volume and only marginal growth in outpatient visits. This underperformance led BRI Danareksa to reduce its revenue and profit targets for SILO by 7% and 14%, respectively, reflecting a cautious outlook for the remainder of the year, despite SILO’s efforts to boost revenue and manage insurance partnerships.