On October 11, the Prime Minister delivered a brief televised address announcing that the country will reopen to vaccinated foreign tourists from at least ten low-risk countries, including England, Singapore, the United States of America, and China, on November 1, in order to revive the tourism and economy beaten by COVID-19. Arrivals who are fully vaccinated can bypass quarantine.
As of 11:48 local time in Thailand, the share price of the Erawan Group Public Company Limited (ERW) rose ฿0.18/share or 5.66% to ฿3.36/share, with a trading value of 401 million baht.
The share price of Asset World Corp Public Company Limited (AWC) rose ฿0.20/share or 4.37% to ฿4.78/share, with a trading value of 393 million baht.
The share price of S Hotels and Resorts Public Company Limited (SHR) rose ฿0.12/share or 3.26% to ฿3.80/share, with a trading value of 225 million baht.
The share price of Minor International Public Company Limited (MINT) rose ฿0.75/share or 2.26% to ฿34.00/share, with a trading value of 765 million baht.
The share price of Central Plaza Hotel Public Company Limited (CENTEL) rose ฿0.50/share or 1.37% to ฿37.00/share, with a trading value of 150 million baht.
KTBST Securities (KTBST) stated that the Prime Minister’s announcement of Thailand’s reopening guidelines effective November 1, 2021 is expected to create a positive sentiment, driving the SET higher on expectations that the country’s key Economic Engine will be restored. Additionally, the number of visitors is likely to recover, boosting the tourism sector in recovering more quickly than expected beginning in 4Q21.
KTBST chooses ERW as its top hotel stock pick. With tourism likely to recover, this should enable a stronger-than-expected rebound in 4Q21, as ERW will benefit from the largest revenue share in Thailand, at 88% Accordingly, KTBST recommends a “BUY” rating with a target price of 3.00 baht.