KGI Securities noted in its analysis that investment promotion applications in Thailand soared to 431 billion baht in the latest reporting period, almost doubling from a year earlier, according to Board of Investment (BOI) data.
The figure received a significant lift from the 109-billion-baht Orange Line rail project and robust foreign direct investment (FDI) inflows, which reached 268 billion baht, an increase of 62% year-on-year. Non-FDI applications remained flat at 54.5 billion baht.
The technology sector was a standout, with digital-related FDI multiplying fivefold to 85 billion baht. Investment in the electronics and electrical industries climbed 18% to 88 billion baht, while automotive sector investment rose 39% to 32 billion baht. Major sources of FDI were Chinese-speaking markets, including China, Singapore, and Hong Kong.
In Thailand’s industrial estate sector, WHA Corporation (WHA) led with the sale and transfer of 876 and 843 rai of land, achieving 40% of its 2025 sales target, and showing robust year-on-year and quarter-on-quarter growth. Amata Corporation (AMATA), on the other hand, reported sales and transfers of 284 and 279 rai, accounting for 20% of its 2025 goal.
Combined, the two companies’ first-quarter earnings surged to 2.9 billion baht, up 59% year-on-year and 28% quarter-on-quarter, largely underpinned by WHA’s stellar performance. Domestic industrial estate demand remained the key revenue driver, with contributions from Vietnam still minimal.
Outside of industrial estates, utility and water business segments faced headwinds from weaker economic activity and softer exports amid increasing global trade tensions. AMATA saw a decline in utilities revenue, primarily due to reduced power and water consumption in Vietnam, as Chinese clients were forced to scale back output following U.S. export restrictions.
WHA also reported softer utilities income from lower Thai industrial consumption, although its Vietnamese operations delivered an early teen year-on-year growth. The power sector struggled, weighed by losses at the Gheco One IPP facility and declining revenue from small power producers (SPP).
KGI has trimmed full-year outlooks for both companies in response to industry challenges. AMATA’s 2025 land sales forecast was cut to 1,500 rai, 50% below the previous year, versus the company’s own guidance of 3,500 rai.
WHA’s land sales projection was lowered to 2,250 rai, albeit only slightly below its target. Combined, total land sales are expected to drop 33% year-on-year to 3,750 rai, and land transfers are seen easing 10% to 3,600 rai, with strong backlogs supporting continued earnings growth of about 11% year-on-year.
As geopolitical tensions and trade uncertainties could slow the pace of investment relocations into Thailand, the analyst maintains a ‘Neutral’ rating on the industrial estate sector, with an ‘Outperform’ on WHA (target price 4.10 baht per share) and ‘Neutral’ on AMATA (target price 16.00 baht per share).
WHA is likely to see earnings frontloaded this year, while AMATA’s ability to meet its aggressive land sales goal remains uncertain amid ongoing trade disruptions.
