Market Roundup 6 September 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,548.78 points, increased 0.92 points or 0.06% with a trading value of 54 billion baht. The analyst stated that the Thai stock market fluctuated with the energy sector supporting the market after Saudi Arabia announced an extension of production cut to the end of this year. Meanwhile, the banking and retail sector also edged higher in response to the detail of the government’s THB 10,000 giveaway to stimulate the economy. However, the power generator sector weighed the market down as concerns over the government’s measure of lowering Ft remained.


2) AOT expects to top revenue projection by 20%

Chief Director of Airport of Thailand PCL (AOT), Mr. Kirati Kitmanawat estimated AOT’s revenue growth over 20% of 2023 target with 9-month (Oct’22 to Jun’23) revenue currently at THB 33 billion and net profit at THB 5.3 billion.

Both the International Civil Aviation Organization (ICAO) and AOT believed total passenger arrivals in FY4Q23 (Jul to Sep’23) will grow by 15%, compared to the previous quarter which will reach 75% before covid-19 level. The number will reach 80% in FY1Q24 (Oct to Dec’23) and 100% in FY1Q25 (Oct to Dec’24) with Suvarnabhumi Airport’s passengers at 0.16, 0.18 and 0.21 million per day, respectively.


3) MINT, ERW and AOT are top picks for tourists recovery from visa exemption

CGS-CIMB Securities stated that tourist arrivals in Thailand are on track to meet its projection of 28 million by the end of this year. The number is expected to reach 35-40 million in 2024, but still lower than the pre-Covid figure of 41.7 million. Though a strong recovery in 4Q23 and 2024 is expected, it is still a challenge for Thailand given higher competition after the Chinese government lifted restrictions on outbound group tours to Japan, South Korea and others, while the Indian government plans to increase outbound remittance tax from 5% to 20% for overseas tours that includes air tickets and hotels.

Citing historical data in 2014 and 2018 of waiving visa fees, CGS-CIMB analyst stated that easing of visa requirements and fees have proven successful in the past as tourist arrivals rose from 19-56% during the implementation in 2014 and 2018 when compared to the preceding three-month average.

CGS-CIMB reiterated Overweight rating on ERW and Minor International Public Company Limited (SET: MINT) as sector’s top picks and also liked AOT as a defensive option due to its lower operating leverage.