Bualuang Securities’ latest survey shows that surging energy expenses have begun to sharply reshape Thai consumer behavior. Of 743 respondents, nearly 60% noted significant impacts from higher energy prices, pushing over 65% to adjust their spending patterns—a development happening more quickly than previously anticipated.
Key Findings
- Over 90% observed inflation at the checkout, with 85% cutting back on other expenditures to cover essentials.
- Discretionary spending and travel were among the first areas reduced, with more than half of respondents scaling back.
- The shift is structural: over 60% expressed interest in electric vehicles (EVs) and solar energy as long-term solutions.
Investment Outlook
The report advises investors to adopt a defensive stance. Recommended picks include CPALL for essentials, ADVANC for surging in-home data use, and WHA for its position in the EV supply chain. Solar EPC specialist GUNKUL and mid- to long-term EV-related stocks like KGEN are also on the watchlist. Sectors to avoid include transport, airlines, hotels, discretionary retail, and mall-driven industries, all now facing earnings risks due to slumping demand and reduced mobility.
Sector Highlights
- Industrial Estate: While near-term EV demand is moderate, long-term interest is robust, and upstream industrial investment is driving growth.
- Telecoms: Consumers spending more time at home supports stable revenue for fixed broadband providers, favoring ADVANC.
- Grocery: Essentials and food stocking benefit CPALL as consumers prioritize necessities.
- Utilities: Residential power demand is slightly down, but contracted revenues for listed generators shield their earnings. Solar panel adoption, however, is poised to accelerate, benefiting companies like GUNKUL.
- Lifestyle, Discretionary, IT Retail: Spending on non-essentials has fallen sharply. Some resilience exists in low-ticket, repeatable goods, and IT demand is bolstered by work-from-home trends and new tech product cycles.
- Banking: Consumers are averse to new debt; most aim to manage expenses and maintain asset quality.
- Transport, Energy, Restaurants, and Tourism: These sectors face increased pressure from higher fuel prices, reduced mobility, and tighter household budgets.
The survey signals a profound and immediate shift in Thai consumer behavior, with downstream effects on multiple sectors and clear strategies for navigating the new demand landscape.
