Following Bangkok lockdowns easing, analyst suggests “city reopening plays”, picking 12 stocks from 5 sectors –banking, media, consumer goods, healthcare and transportation– that will be benefited including TISCO, KBANK, PLANB, OSP, RS, CRC, M, BDMS, BCH, PR9, BEM and BTS.
Asia Plus Securities (APS) stated that as infection in Thailand has slowed down, the government will ease COVID-19 control measures. At the Bangkok Metropolitan Administration (BMA) disease control committee meeting on January 21, 13 businesses will be reopened since January 22 onwards, including game and internet shops, elderly care centers, stadiums (except boxing stadiums and racecourses), banquet halls (with no more than 300 participants), Buddha amulet centers, beauty salons, fitness centers, and spas and massage shops.
Following Bangkok, other provinces are expected to soften COVID-19 control measures soon. Kanchanaburi has allowed local hotels and resorts to reopen. Samut Sakhon considers reopening the Central Shrimp Market on January 26. Trat considers lockdown easing on January 31.
The market is still watching when entertainment venues, boxing stadiums, and schools will be reopened. Whether lockdown measures will be eased from now on depends on new case count later in January.
With the lockdown easing, APS expected that it will benefit Thailand’s economy, especially spending, trade, and transportation. Therefore, APS suggested the following industries “city reopening plays” will enjoy positive sentiment from business reopening:
1) Banking plays will benefit from higher demand for loans and lower NPL risk. APS favors TISCO and KBANK.
2) Media plays (especially out-of-home advertising (OOH) plays) will make higher revenue as economic activities resume. APS favors PLANB.
3) Consumer goods plays will benefit from a rebound in spending and economic stimulus measures, e.g. Half-Half co-payment (Kon La Krueng) and We Win (Rao Chana). APS favors OSP, RS, CRC, and M.
4) Healthcare plays will benefit from a rebound in local and foreign patient volume and vaccine good news. APS favors BDMS, BCH, and PR9.
5) Transportation plays will benefit from a rebound in expressway traffic and mass transit passenger volume. APS favors BEM and BTS.