The SET Index is poised for an upward climb to 1,300 points within 2025, according to Therdsak Thaveeteeratham, Deputy Managing Director of Research at Asia Plus Securities (ASPS).
Despite a faster-than-anticipated leap past 1,200 points recently, Terdsak believes Thai equities are attractively valued, especially against the backdrop of a downtrend in interest rates.
ASPS’ baseline earnings per share (EPS) estimate stands at THB 86. If the SET reaches 1,300, and assuming a 2-year government bond yield at 1.2%, EPS could climb to THB 96—implying an average yield of 5.4%, a compelling proposition for investors.
ASPS recommends investors hold off on short-term investment and wait for clearer market direction, reflecting confidence that listed company earnings will pick up in the second half of the year. After THB 270 billion profit in 1Q25, Q2 profits could break THB 300 billion and possibly reach THB 330–340 billion — over 60% of the full-year profit target.
Key sectors expected to benefit from domestic drivers include construction, as the 2026 annual budget is nearly finalized. Construction companies such as STECON Group PCL (SET: STECON) and CH. Karnchang PCL (SET: CK), with over THB 200 billion in backlog, these companies are expected to shine again.
Hospital stocks remain attractive, led by Bangkok Chain Hospital PCL (SET: BCH) and Bangkok Dusit Medical Services PCL (SET: BDMS), both demonstrating solid growth potential. In the banking sector, certain banks continue to show earnings resilience amid rate cuts, maintain strong return on equity (ROE), and offer share buybacks plus high dividends—Bangkok Bank PCL (SET: BBL) is singled out.
Growth stocks such as Thai Coconut PCL (SET: COCOCO) are noted for consistent profit and future expansion.
For mid- to small-cap stocks, a resurgence is anticipated, especially for the property sector, riding the wave of lower interest rates and favorable LTV policies. High dividend yields (not below 6%) are expected from companies like Supalai PCL (SET: SPALI) and AP (Thailand) PCL (SET: AP).
Suwat Sinsadok, Managing Director at Globlex Securities (GBS), echoes optimism for 1,300 points, crediting AI-linked blue chips benefiting from the U.S. artificial intelligence (AI) boom. Delta Electronics (Thailand) (SET: DELTA) and Gulf Development (SET: GULF) are key drivers—DELTA is even called “Thailand’s NVIDIA” and has fueled over 100 index points recently.
Domestic political uncertainty is acknowledged but viewed as having limited impact on the index, as government economic stimulus has been minimal and foreign institutional investors have largely factored out Thai political risk. Potential government change could even be positive.
Going forward, the index’s leadership may shift from tech to utilities. BCPG PCL (SET: BCPG) stands out for investment in four U.S. power plants centered around data centers, signaling a “golden age” ahead for power stocks over 2–3 years.
GULF’s international expansion could push its stock price to THB 55. Other strong utility or related names include Electricity Generating PCL (SET: EGCO) and Eastern Polymer Group (SET: EPG) (noted for its thermal insulation products).
Communications stocks like Thaicom PCL (SET: THCOM) and Advanced Info Service PCL (SET: ADVANC) are also seen as solid. In banking and non-bank, Kasikornbank PCL (SET: KBANK) leads.
Companies tied to Vietnam investment, such as Srinanaporn Marketing PCL (SET: SNNP) and CK Power PCL (SET: CKP), are expected to play key roles in driving the index towards 1,300 points.
For mid- and small-caps, GBS sees further upside this year, particularly among exporters less impacted by the U.S.’s 19% tariff measures (like the food and pet sectors). Domestic demand stocks such as i-Tail Corporation PCL (SET: ITC), PTG Energy PCL (SET: PTG), and Plan B Media PCL (SET: PLANB) are seen buttressing the market.
