Overview of the Report

CGS International’s January 14, 2025, strategy note provides a deep dive into the Thai market amidst regulatory risks and a challenging economic environment. The report highlights eight notable companies that are positioned to either thrive or face headwinds in 2025. These companies include Amata Corporation, Bangkok Chain Hospital, Bumrungrad Hospital, Carabao Group, Central Pattana, Central Retail Corporation, Muangthai Capital, and SCB X.

Amata Corporation (AMATA)

Recommendation: Add
Target Price: THB33.00
Current Price: THB26.25

Amata Corporation is poised to benefit significantly from increased inbound foreign direct investment (FDI) into Thailand. With the new US administration expected to implement trade barriers against China, Thailand could become a more attractive destination for investors. Amata is strategically positioned to capitalize on this trend, making it the top pick for this theme.

The company’s valuation metrics support its favorable outlook. It has projected core price-to-earnings (P/E) ratios of 13.6x for FY24F, 11.0x for FY25F, and 10.0x for FY26F, with a three-year EPS compound annual growth rate (CAGR) of 18.8%. Additionally, its return on equity (ROE) is expected to grow steadily, and its dividend yield is projected to rise from 2.9% in FY24F to 4.0% in FY26F.

Bangkok Chain Hospital (BCH)

Recommendation: Add
Target Price: THB19.70
Current Price: THB14.60

Bangkok Chain Hospital is expected to deliver strong performance in the coming years, driven by robust healthcare demand. The company is forecasted to see its P/E ratios decline from 25.4x in FY24F to 18.3x in FY26F, reflecting improved earnings efficiency. Its three-year EPS CAGR stands at 12.9%, while its ROE is projected to improve alongside increasing dividend yield, from 2.0% in FY24F to 2.7% in FY26F.

This hospital operator remains a solid choice for investors looking to capitalize on Thailand’s growing healthcare sector.

Bumrungrad Hospital (BH)

Recommendation: Add
Target Price: THB297.00
Current Price: THB192.50

Bumrungrad Hospital continues to be a leader in the premium healthcare market. Its three-year EPS CAGR of 7.5% underscores its steady growth trajectory. The company’s valuation remains attractive, with its P/E ratio expected to decline from 19.5x in FY24F to 17.9x in FY26F. Dividend yields are also projected to increase incrementally from 2.5% to 2.8% over the same period.

As a key player in the healthcare sector, Bumrungrad Hospital is well-positioned for continued growth.

Carabao Group (CBG)

Recommendation: Add
Target Price: THB94.50
Current Price: THB73.50

Carabao Group, a leading energy drink producer, is expected to achieve strong earnings growth with a three-year EPS CAGR of 22.4%. Its P/E ratio is projected to decline from 26.5x in FY24F to 21.2x in FY26F, indicating improved profitability. Additionally, its dividend yield is forecasted to increase from 2.4% in FY24F to 3.5% in FY26F.

Carabao Group remains a top pick in the consumer sector, supported by its strong brand and market presence.

Central Pattana (CPN)

Recommendation: Add
Target Price: THB85.25
Current Price: THB53.25

Central Pattana stands out as a beneficiary of ongoing economic recovery and government stimulus measures. Its P/E ratio is expected to decline from 15.7x in FY24F to 12.6x in FY26F, while dividend yields are forecasted to increase from 3.8% to 4.3% over the same period.

With its robust fundamentals and strategic positioning, Central Pattana is well-positioned to deliver sustained growth.

Central Retail Corporation (CRC)

Recommendation: Add
Target Price: THB44.00
Current Price: THB33.75

Central Retail Corporation is expected to post 15% EPS growth in FY25F, supported by government initiatives such as the Easy E-receipt program. The company’s P/E ratio is projected to decline from 22.7x in FY24F to 17.6x in FY26F, while its dividend yield is expected to steadily increase from 1.8% to 2.3% during the same period.

Central Retail Corporation remains a strong contender in the retail sector, with promising growth prospects.

Muangthai Capital (MTC)

Recommendation: Add
Target Price: THB56.50
Current Price: THB44.00

Muangthai Capital is a standout in the consumer finance sector. The company is set to benefit from various government initiatives, including the THB10,000 cash handout plan and debt restructuring programs. Its three-year EPS CAGR of 21.8% highlights its strong growth potential. The P/E ratio is expected to decline from 15.8x in FY24F to 10.6x in FY26F, while its dividend yield is forecasted to increase from 1.0% to 1.4% over the same period.

Muangthai Capital is a top pick for investors seeking exposure to the consumer finance sector.

SCB X (SCB)

Recommendation: Add
Target Price: THB130.00
Current Price: THB121.00

SCB X is a key player in Thailand’s banking sector, with consistent performance expected over the next few years. Its P/E ratio is projected to decline from 9.5x in FY24F to 8.2x in FY26F, while its dividend yield is forecasted to rise from 8.5% to 9.7% over the same period.

SCB X remains a solid choice for investors looking for stable returns in the financial sector.

Conclusion

CGS International’s January 2025 report offers a comprehensive analysis of key Thai stocks with promising investment opportunities. The highlighted companies—Amata Corporation, Bangkok Chain Hospital, Bumrungrad Hospital, Carabao Group, Central Pattana, Central Retail Corporation, Muangthai Capital, and SCB X—each have unique strengths and strategic advantages, making them favorable picks for the upcoming year.

Investors are encouraged to explore these opportunities further to capitalize on Thailand’s evolving economic landscape.