Company Coverage
Strategy Alpha Picks: Transition From Externally To Domestically Oriented Sectors
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 return outperformed the market in Jul 26 (Our portfolio: +5.0% vs SET Index: +2.0%).
- The top outperforming stocks were: a) RATCH (+22.2%), b) KTC (+15.0%), and c) MTC (+8.7%). The underperformers were: a) THAI (-15.8%), b) BDMS (-0.5%), and c) CPALL (+2.7%).
- For Aug 26, we expect the Thai equity market to remain supported by strong earnings from the energy, petrochemical, and refinery sectors. Meanwhile, domestically oriented sectors could bottom out in 2Q26 and have a better outlook in 2H26.
- Aug 26 Alpha Picks: BDMS, BJC, CPALL, CPN, GLOBAL, ITC, KTC, MTC, SCC and THAI.
What's New
- Portfolio outperformed in Jul 26. Our portfolio outperformed the market in Jul 26 (+5.0% vs SET Index: +2.0%). The best-performing stocks were: a) RATCH (+22.2%), b) KTC (+15.0%), and c) MTC (+8.7%). The worst performing were: a) THAI (-15.8%), b) BDMS (-0.5%), and c) CPALL (+2.7%).
- Thai equities moved up in July. The Thai equities market moved up in July, mainly supported by renewed tensions between the US and Iran, which drove crude oil prices higher and boosted upstream energy stocks. In addition, the market was supported by domestically oriented sectors, driven by impressive 2Q26 earnings from the banking sector and upward GDP forecast revisions by the Bank of Thailand and the Fiscal Policy Office. The outperforming sectors were: a) media (+11.6%), b) energy (+10.7%), and c) banking (+10.1%). The underperforming sectors were: a) electronics (-14.0%), b) tourism (-0.9%), and c) transportation (-0.8%).
- Optimistic view in August. We are optimistic on the Thai equities market although it may face some short-term profit-taking pressure, particularly in the banking sector, which has begun to lose its catalysts after reporting its 2Q26 earnings. However, we expect the Thai equity market to continue receiving support from strong earnings reports in the energy, petrochemical, and refinery sectors, which are expected to be impressive, driven by crude oil prices that remain significantly higher than the previous year. In addition, domestically oriented sectors, such as retail and tourism, could bottom out in 2Q26 and have a better outlook in 2H26.
- Increasing exposure to domestically oriented sectors. We continue to recommend increasing exposure to domestically oriented sectors due to the improved economic outlook and we expect the domestically oriented sectors’ operating performance to bottom out in 2Q26.
Action
- Aug 26 Alpha Picks: BDMS, BJC, CPALL, CPN, GLOBAL, ITC, KTC, MTC, SCC and THAI.
- Add BJC, supported by the positive outlook of its packaging business, driven by strong demand and add ITC due to strong demand for pet food in 2H26.
- We take profit on BBL and RATCH as we believe that their share prices already priced in positive factors and may lack catalysts in the short term.
Highlights
- Our portfolio’s return outperformed the market in Jul 26 (Our portfolio: +5.0% vs SET Index: +2.0%).
- The top outperforming stocks were: a) RATCH (+22.2%), b) KTC (+15.0%), and c) MTC (+8.7%). The underperformers were: a) THAI (-15.8%), b) BDMS (-0.5%), and c) CPALL (+2.7%).
- For Aug 26, we expect the Thai equity market to remain supported by strong earnings from the energy, petrochemical, and refinery sectors. Meanwhile, domestically oriented sectors could bottom out in 2Q26 and have a better outlook in 2H26.
- Aug 26 Alpha Picks: BDMS, BJC, CPALL, CPN, GLOBAL, ITC, KTC, MTC, SCC and THAI.
What's New
- Portfolio outperformed in Jul 26. Our portfolio outperformed the market in Jul 26 (+5.0% vs SET Index: +2.0%). The best-performing stocks were: a) RATCH (+22.2%), b) KTC (+15.0%), and c) MTC (+8.7%). The worst performing were: a) THAI (-15.8%), b) BDMS (-0.5%), and c) CPALL (+2.7%).
- Thai equities moved up in July. The Thai equities market moved up in July, mainly supported by renewed tensions between the US and Iran, which drove crude oil prices higher and boosted upstream energy stocks. In addition, the market was supported by domestically oriented sectors, driven by impressive 2Q26 earnings from the banking sector and upward GDP forecast revisions by the Bank of Thailand and the Fiscal Policy Office. The outperforming sectors were: a) media (+11.6%), b) energy (+10.7%), and c) banking (+10.1%). The underperforming sectors were: a) electronics (-14.0%), b) tourism (-0.9%), and c) transportation (-0.8%).
- Optimistic view in August. We are optimistic on the Thai equities market although it may face some short-term profit-taking pressure, particularly in the banking sector, which has begun to lose its catalysts after reporting its 2Q26 earnings. However, we expect the Thai equity market to continue receiving support from strong earnings reports in the energy, petrochemical, and refinery sectors, which are expected to be impressive, driven by crude oil prices that remain significantly higher than the previous year. In addition, domestically oriented sectors, such as retail and tourism, could bottom out in 2Q26 and have a better outlook in 2H26.
- Increasing exposure to domestically oriented sectors. We continue to recommend increasing exposure to domestically oriented sectors due to the improved economic outlook and we expect the domestically oriented sectors’ operating performance to bottom out in 2Q26.
Action
- Aug 26 Alpha Picks: BDMS, BJC, CPALL, CPN, GLOBAL, ITC, KTC, MTC, SCC and THAI.
- Add BJC, supported by the positive outlook of its packaging business, driven by strong demand and add ITC due to strong demand for pet food in 2H26.
- We take profit on BBL and RATCH as we believe that their share prices already priced in positive factors and may lack catalysts in the short term.
Analyst
Kitpon Praipaisarnkit
kitpon@uobkh.co.thAnalyst
Krit Tanarattananon
krit@uobkh.co.thAnalyst
Thailand Research Team
research@uobkh.co.thAnalyst
Natthida Chuaysong
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
