Krungsri Securities (KSS) stated that investment promotion figures by the Board of Investment (BOI) continue to target the digital economy, advanced technology, clean energy, and food security. This benefits several sectors in the Thai stock market, which can be categorized into five main themes:
1. Data center and digital business (the highest investment value): The expansion of data centers increases the demand for electricity and digital infrastructure, benefiting the power plant, communications and digital, and industrial estate sectors. Key power plant stocks include Gulf Development PCL (SET: GULF), Global Power Synergy PCL (SET: GPSC), and B.Grimm Power PCL (SET: BGRIM).
Communications and digital beneficiaries include Advanced Info Service PCL (SET: ADVANC) and True Corporation PCL (SET: TRUE). Meanwhile, industrial estate developers expected to benefit include WHA Corporation PCL (SET: WHA), Amata Corporation PCL (SET: AMATA), and Rojana Industrial Park PCL (SET: ROJNA).
2. Electronics, printed circuit board, and semiconductor sector: These benefit from production base relocations and the demand for advanced electronics devices. Key stocks include Delta Electronics (Thailand) PCL (SET: DELTA), KCE Electronics PCL (SET: KCE), Hana Microelectronics PCL (SET: HANA), and Cal-Comp Electronics (Thailand) PCL (SET: CCET). Industrial estates like AMATA and WHA also see indirect benefits.
3. Electric vehicle/automotive/battery sector: In line with the growth of electric vehicles and the energy transition. Key battery and energy beneficiary includes GPSC, while auto parts manufacturers expected to benefit include AAPICO Hitech PCL (SET: AH), Somboon Advance Technology PCL (SET: SAT), and Thai Stanley Electric PCL (SET: STANLY). The energy supply chain includes PTT PCL (SET: PTT), PTT Exploration and Production PCL (SET: PTTEP), and industrial estates such as WHA, AMATA.
4. Petrochemical, materials, and recycling sector: Focused on high-value-added and sustainable products. Key stocks include PTT Global Chemical PCL (SET: PTTGC), The Siam Cement PCL (SET: SCC), Indorama Ventures PCL (SET: IVL), and IRPC PCL (SET: IRPC).
5. Agriculture and food sector/pet food business: With ongoing growth in food security and pet food themes. Key Food stocks include Charoen Pokphand Foods PCL (SET: CPF), GFPT PCL (SET: GFPT), and Betagro PCL (SET: BTG). Pet food and processed food stocks expected to benefit include i-Tail Corporation PCL (SET: ITC), Asian Alliance International PCL (SET: AAI), and Thai Union Group PCL (SET: TU).
Bualuang Securities estimates that investment in the data center business is the most significant among industries applying for BOI promotions, with a total investment value of over THB 700 billion. This project is expected to be a positive supporting factor for power plant stocks, due to the significant projected increase in electricity demand, which is expected to reach around 3–4 GW by 2028.
The benefits from such investments can be divided into two main parts: First, the auctioning of new power plants to support increasing electricity demand, especially in the Eastern Economic Corridor (EEC), which will help reduce transmission system costs. Featured and recommended stocks in this group are GULF and GPSC. Second, companies related to the construction and extension of power transmission systems to support network expansion, such as Gunkul Engineering PCL (SET: GUNKUL).
Furthermore, there are sectors receiving indirect benefits from data center expansion, including businesses supplying water in the EEC area due to rising water demand. Beneficiary stocks likely to gain include WHA Utilities and Power PCL (SET: WHAUP) and Eastern Water Resources Development and Management PCL (SET: EASTW).
