KGI says flood-hit stocks: BJC and CPALL stand out, HMPRO and TASCO benefit

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Summary · why it matters

KGI Securities (Thailand) said heavy rain covered Bangkok and its vicinity from September 25, causing flash floods in many areas, with the overall situation beginning to improve slowly from September 27, and it views the impact on the economy and the market as still limited. On the positive side, consumer staples groups such as BJC, CPALL and CPAXT are likely to benefit from stockpiling of fresh food, dry food and necessities. Meanwhile, home and building repair groups such as HMPRO, which has 50% of all its branches in the central region, and TASCO, as well as DOHOME and GLOBAL, are likely to benefit from the positive market conditions as well. However, KGI views this benefit as unlikely to be significant enough to raise its earnings forecasts for the stocks under coverage. On the negative side, the floods may affect customer numbers and goods transport flows for commercial property such as CPN, hotel groups and restaurants, with AWC having the highest concentration in Bangkok and therefore possibly facing the heaviest short-term impact. But if hotel stock prices pull back because of the floods, that would be a buying opportunity, since the main picture is still that revenue per available room is improving and the high travel season is approaching. As for restaurant stocks such as AU, M and MAGURO, they may be somewhat affected, with MAGURO temporarily closing all 6 of its branches, accounting for about 11% of the company's total 61 branches.

Impact on assets 12

Consumer Discretionary± Mixed
Real Estate▼
Asset World Corp Public Company Limited
AWC
▼ NegativeDemandrelevance

AWC has the highest concentration in Bangkok and may face the heaviest short-term impact as floods affect customer numbers and goods transport flows for commercial property.

Consumer Staples▲
Berli Jucker PCL
BJC
▲ PositiveDemandrelevance

BJC is cited among consumer staples groups likely to benefit from stockpiling of fresh food, dry food and necessities during the floods.

CP Axtra Public Company Limited
CPAXT
▲ PositiveDemandrelevance

CPAXT is cited among consumer staples groups likely to benefit from stockpiling of fresh food, dry food and necessities during the floods.

Digital Finance & Tokenization▲
CP ALL Public Company Limited
CPALL
▲ PositiveDemandrelevance

CPALL is cited among consumer staples groups likely to benefit from stockpiling of fresh food, dry food and necessities during the floods.

Materials▲