Analyst
Kitpon Praipaisarnkit
kitpon@uobkh.co.thAnalyst
Krit Tanarattananon
krit@uobkh.co.thAnalyst
Thailand Research Team
research@uobkh.co.thAnalyst
Natthida Chuaysong
Highlights
- Our portfolio's returns outperformed the market in Aug 26 (Our portfolio: +2.0% vs SET Index: -1.8%).
- The outperforming stocks were: a) THAI (+4.5%), b) SCC (+2.8%), and c) BDMS (+2.1%). The underperforming stocks were: a) MTC (-8.8%), b) GLOBAL (-6.1%), and c) BJC (-4.3%).
- For Sep 26, while we remain optimistic on the Thai equity market from a medium- to long-term perspective, we expect some profit-taking. Nevertheless, we expect downside risk for Thai equities to remain relatively limited, supported by: a) capital inflows from the domestic bond market, and b) continued upward revisions to the EPS outlook for the Thai equity market.
- Sep 26 Alpha Picks: BDMS, BH, BJC, CPALL, CPN, ITC, KTC, MTC, RATCH, SCC and THAI.
What's New
- Portfolio outperformed in Aug 26. Our portfolio outperformed the market in Aug 26 (+2.0% vs SET Index: -1.8%). The outperforming stocks were: a) THAI (+4.5%), b) SCC (+2.8%), and c) BDMS (+2.1%). The underperforming stocks were: a) MTC (-8.8%), b) GLOBAL (-6.1%), and c) BJC (-4.3%).
- Thai equities moved down in August. The Thai equities market moved down in August, with the decline being primarily driven by profit-taking, particularly in the electronics sector, which tends to move in line with US technology stocks amid concerns over potential interest rate hikes by the US Federal Reserve. The outperforming sectors were: a) petrochemical (+15.5%), b) agricultural (+5.7%), and c) construction material (+2.9%). The underperforming sectors were: a) electronics (-8.7%), b) ICT (-6.7%), and c) finance (-4.1%).
- Sideway trajectory in the short term. While we remain optimistic on the Thai equity market from a medium- to long-term perspective, we expect some profit-taking in the short-term following the market’s continued rally, as a lack of near-term catalysts and external headwinds have emerged, including concerns over potential interest rate hikes by the US Federal Reserve. Nevertheless, we expect downside risks for Thai equities to remain relatively limited, supported by: a) capital inflows from the domestic bond market, where yields remain below the inflation rate; and b) continued upward revisions to the EPS outlook for the Thai equity market.
- Focus on companies with better earnings outlook in 2H26. We continue to recommend increasing exposure to sectors that have a better earnings outlook in 2H26.
Action
- Sep 26 Alpha Picks: BDMS, BH, BJC, CPALL, CPN, ITC, KTC, MTC, RATCH, SCC and THAI.
- Add BH, supported by a strong 3Q26 earning outlook from a return of Middle East patients.
- Add RATCH, supported by a better earnings outlook in 2H26, supported by the normalisation of Hongsa Power Company (HPC) and Paiton following maintenance, together with potential improvement at Hin Kong Power (HKP) and we expect RATCH will benefit from the new Power Development Plan (PDP) 2026.
- We take profit on GLOBAL as we see that the share price has already priced in impressive earnings in 2Q26 while earnings growth is expected to moderate in 3Q26.
Highlights
- Our portfolio's returns outperformed the market in Aug 26 (Our portfolio: +2.0% vs SET Index: -1.8%).
- The outperforming stocks were: a) THAI (+4.5%), b) SCC (+2.8%), and c) BDMS (+2.1%). The underperforming stocks were: a) MTC (-8.8%), b) GLOBAL (-6.1%), and c) BJC (-4.3%).
- For Sep 26, while we remain optimistic on the Thai equity market from a medium- to long-term perspective, we expect some profit-taking. Nevertheless, we expect downside risk for Thai equities to remain relatively limited, supported by: a) capital inflows from the domestic bond market, and b) continued upward revisions to the EPS outlook for the Thai equity market.
- Sep 26 Alpha Picks: BDMS, BH, BJC, CPALL, CPN, ITC, KTC, MTC, RATCH, SCC and THAI.
What's New
- Portfolio outperformed in Aug 26. Our portfolio outperformed the market in Aug 26 (+2.0% vs SET Index: -1.8%). The outperforming stocks were: a) THAI (+4.5%), b) SCC (+2.8%), and c) BDMS (+2.1%). The underperforming stocks were: a) MTC (-8.8%), b) GLOBAL (-6.1%), and c) BJC (-4.3%).
- Thai equities moved down in August. The Thai equities market moved down in August, with the decline being primarily driven by profit-taking, particularly in the electronics sector, which tends to move in line with US technology stocks amid concerns over potential interest rate hikes by the US Federal Reserve. The outperforming sectors were: a) petrochemical (+15.5%), b) agricultural (+5.7%), and c) construction material (+2.9%). The underperforming sectors were: a) electronics (-8.7%), b) ICT (-6.7%), and c) finance (-4.1%).
- Sideway trajectory in the short term. While we remain optimistic on the Thai equity market from a medium- to long-term perspective, we expect some profit-taking in the short-term following the market’s continued rally, as a lack of near-term catalysts and external headwinds have emerged, including concerns over potential interest rate hikes by the US Federal Reserve. Nevertheless, we expect downside risks for Thai equities to remain relatively limited, supported by: a) capital inflows from the domestic bond market, where yields remain below the inflation rate; and b) continued upward revisions to the EPS outlook for the Thai equity market.
- Focus on companies with better earnings outlook in 2H26. We continue to recommend increasing exposure to sectors that have a better earnings outlook in 2H26.
Action
- Sep 26 Alpha Picks: BDMS, BH, BJC, CPALL, CPN, ITC, KTC, MTC, RATCH, SCC and THAI.
- Add BH, supported by a strong 3Q26 earning outlook from a return of Middle East patients.
- Add RATCH, supported by a better earnings outlook in 2H26, supported by the normalisation of Hongsa Power Company (HPC) and Paiton following maintenance, together with potential improvement at Hin Kong Power (HKP) and we expect RATCH will benefit from the new Power Development Plan (PDP) 2026.
- We take profit on GLOBAL as we see that the share price has already priced in impressive earnings in 2Q26 while earnings growth is expected to moderate in 3Q26.
Analyst
Kitpon Praipaisarnkit
kitpon@uobkh.co.thAnalyst
Krit Tanarattananon
krit@uobkh.co.thAnalyst
Thailand Research Team
research@uobkh.co.thAnalyst
Natthida Chuaysong
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