The share price of Central Plaza Hotel Public Company Limited (SET: CENTEL) rose THB1.25/share or 3.33% to THB38.75/share as of 11.20 hrs. local time in Thailand, with a trading value of THB206 million.
Krungsri Securities said that at today’s meeting, the CCSA is expected to ease Test and Go restrictions and remove RT-PCR test requirements for foreign visitors. This will encourage more inbound tourists, which will benefit hotels and other related sectors.
Krungsri upgraded CENTEL to BUY with a higher target price of THB44/share (raised by 22%) and upgraded FY22 bottom-line to THB581 million profit and FY23/24 earnings by 68% and 33%. The key changes are better profitability arising from the digital transformation program that started in 4Q20. This lifted FY22 hotel GPM to 66% from 60% and reduced SG&A Costs/Sales ratio to 34% from 38%.
The Centre for Covid-19 Situation Administration (CCSA) on Friday will consider allowing tourists to enter Thailand without providing proof of a negative RT-PCR test within 72 hours before arrival. The meeting is also set to reduce foreign visitors’ health insurance coverage from USD50,000 to USD10,000.