ASPS recommends investing in DRs on global tech stocks and Thai stocks to ride the weak baht

Kaohoon··THUS·Read original
2▲13 ▼0Impact / 5
Summary · why it matters

Asia Plus Securities, or ASPS, recommends a Selective Investment strategy, highlighting DRs linked to global technology stocks such as the Optical, CPU & AI Server, Semi Equipment, Cloud and Power groups, alongside Thai stocks that benefit from the weakening baht and the high season. Analysts note that the direction of US Federal Reserve policy continues to pressure the baht. If the terminal interest rate sits at 4.5%, the baht will fluctuate weaker in a range of 35-37 baht per US dollar, or depreciate 4-10%, which is positive for the hospital group that treats foreign patients, such as BH, BDMS, BCH and PR9, as well as the tourism group like AOT, THAI and CENTEL, and the export group like TU, ITC and CPF. For the five standout stocks and interesting DRs, they include SHOP06, whose third-quarter earnings trend remains strong on the back of bringing AI to boost trading volume on its platform; MRVL06, which gets a boost from its Investor Day, where new technology is expected to be unveiled; ITC, which benefits from the weak baht and is awaiting progress on closing its merger deal in the fourth quarter of 2026; TRUE, whose third-quarter 2026 profit is expected to expand prominently, with an interim dividend of 0.15 baht anticipated; and BH, whose revenue and patient numbers from the Middle East are recovering strongly, while the stock still has high upside. On fund flows, although foreign investors still hold Thai stocks including NVDRs amounting to 36.5% of market value, cumulative net buying since the start of the year has fallen from a peak of 75 billion baht to just 18 billion baht, after more than 50 billion baht in net selling over the past two months. However, in the latest trading session, foreign investors began switching to net buying through the NVDR channel to the tune of 2.66 billion baht, reflecting selective accumulation of individual stocks expected to post fourth-quarter 2026 earnings growth to capture the high season.

Impact on assets 15

Health Care▲
Bumrungrad Hospital PCL
BH
▲ PositiveMonetaryrelevance

Weak baht (Fed policy pressuring THB to 35-37/USD) is positive for hospitals treating foreign patients, with BH revenue and Middle East patient numbers recovering strongly.

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

ITC benefits from the weak baht and is awaiting progress on closing its merger deal in Q4 2026.

Thai Union Group PCL
TU
▲ PositiveMonetaryrelevance

TU is named among the export group that benefits from the weakening baht.

Cloud & Digital Infrastructure▲
Shopify Inc
SHOP
▲ PositiveCapitalrelevance

ASPS names SHOP06 DR as a standout, with third-quarter earnings trend remaining strong on the back of bringing AI to boost trading volume on its platform.

Consumer Discretionary▲
Artificial Intelligence▲
Marvell Technology Group Ltd
MRVL
▲ PositiveTechnologyrelevance

ASPS highlights MRVL06 DR as a standout, boosted by its Investor Day where new technology is expected to be unveiled.

Aerospace & Aviation▲
Industrials▲
Airports Of Thailand PCL
AOT
▲ PositiveMonetaryrelevance

Weak baht (driven by Fed policy) is positive for the tourism group, with AOT named among the beneficiaries.

Aging Population▲
Financials▲
Others▲