On Friday at 11:22 AM (Bangkok time), the share price of The Erawan Group Public Company Limited (SET: ERW) rose by 2.19% or THB 0.06 to THB 2.80, with a trading value of THB 18.85 million.
Land and Houses Securities (LHS) projects ERW to report a year-on-year profit growth for the second quarter of 2026, primarily attributed to last year’s low earnings base as well as ongoing expansion in Revenue per Available Room (RevPAR), driven by an improving occupancy rate. However, quarter-on-quarter profit is anticipated to decline, reflecting seasonal impact and additional pressures from ongoing conflicts in the Middle East.
Despite these challenges, ERW has maintained its full-year 2026 revenue growth target, expecting a 9% increase compared to the previous year. This growth is anticipated to be driven mainly by its upper midscale hotel segment, which is projected to grow by 7%, and the HOP INN segment, which is expected to see revenue growth of 14%.
Notably, these forecasts exceed the brokerage’s own projections, which foresee overall revenue growth of 6% year-on-year.
Following these, LHS gives a ‘Buy’ recommendation for ERW and sets a strategic target price of THB 3.06 per share, corresponding to a projected 2026 price-to-earnings ratio of 16x.
