Phillip Securities assesses the property sector, noting that in the first half, the market is adjusting. The value of new project launches is less than sales for both low-rise and high-rise segments among the top 11 companies, leading to lower inventory and a trend of easing supply in the second half. This should improve gross margins due to a better product mix, and price competition may soften next year. In 2Q69, total sales reached 52 billion baht, up 9.2% year-on-year, supported by high-rise sales which had a low base due to the earthquake, while low-rise sales weakened due to reduced demand and new supply. Higher energy costs have pushed construction costs up by about 10%, impacting total costs by around 2.5%, but developers are managing. For 3Q69, the top pick is AP, given two additional condominium projects ready for transfer and a strong low-rise backlog. ASW is a pick for dividends, with the highest expected dividend yield in the group at 10.4%.
AP (Thailand) Public Company LimitedEasing supply in H2 and better product mix should improve gross margins for AP, a top pick.
Assetwise Public Company LimitedASW is picked for dividends with highest expected yield of 10.4%.
