Asia Plus names 10 standout stocks set to benefit from a weak baht

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Summary · why it matters

Asia Plus Securities said 10 standout stocks will benefit from the trend of a continuing weaker baht, divided into hospital groups that benefit from foreign patients, namely BH, BDMS, BCH and PR9; tourism groups that make it easier for foreign tourists to spend, namely AOT, THAI and CENTEL; and export groups that convert revenue back into baht at a higher rate, namely TU, ITC and CPF. The research department said the spread between the 10-year bond yield and Thailand's policy rate remains below its historical average, reflecting that the market still sees no clear signal of a change in interest rate direction. Meanwhile, factors from the United States, from the Fed's perspective, continue to pressure the baht. If the Fed's interest rate stands at 4.5%, the baht will fluctuate in the range of 35 to 37 baht per dollar, or weaken from the current level by about 4% to 10%, if the end of the Fed's interest rate cycle has not yet arrived. On Thailand's water situation, the latest data indicates that many large reservoirs have water volumes exceeding capacity or near critical levels, such as Pa Sak Jolasid Dam at 110%, Nong Pla Lai Dam at 105% and Kaeng Krachan Dam at 102%. Meanwhile, medium and small reservoirs in many provinces, such as Chonburi, Trat, Ubon Ratchathani, Phrae and Phayao, have water volumes exceeding normal storage levels from 113% up to 159%. The point requiring closest monitoring is the area below Chao Phraya Dam, which has a water volume of 2,500 cubic meters per second, while it can hold 2,840 cubic meters per second.

Impact on assets 11

Health Care▲
Bumrungrad Hospital PCL
BH
▲ PositiveDemandrelevance

Named among hospital groups benefiting from foreign patients as the baht weakens.

Consumer Staples▲
i-Tail Corp. PCL
ITC
▲ PositiveMonetaryrelevance

Named as an export group (ITC) that benefits from converting revenue back into baht at a higher rate as the baht weakens.

Thai Union Group PCL
TU
▲ PositiveMonetaryrelevance

Named as an export group (TU) that benefits from converting revenue back into baht at a higher rate as the baht weakens.

Industrials▲
Airports Of Thailand PCL
AOT
▲ PositiveDemandrelevance

Named among tourism groups benefiting as a weaker baht makes it easier for foreign tourists to spend.

Aging Population▲
Consumer Discretionary▲
Aerospace & Aviation▲
Others▲