MACROECONOMICS WEEKLY UPDATE

Thailand’s car exports surge as semiconductor supply improves

 The country exported as many as 86,000 cars in January, increasing by 24.8% compared to the same period last year, as semiconductor shortage has started to ease, according to the Federation of Thai Industries (FTI).

AOT’s earnings jump as air traffic in Thailand increases

The Thai economy appears to be rebounding to pre-pandemic levels, thanks to a return of both domestic and international flights and tourists. In the first two months of this year, Thailand’s civil aviation authority reports that it has seen 150,378 flights–up 105.04% compared to last year–and 66,829 international flights–up 83.549% from last year–marking an increase of 279.15% from last year’s numbers for AOT’s non-aviation revenues and profits as well as aviation revenues.

The Thai government expects foreign investment of THB 100 billion this year

Foreign companies invested 5.12 billion baht in Thailand last month, 52 of which were from Japan, followed by six from Singapore, nine from the US, five from the UK and three from China. Most foreign businesses in January were in line with Thailand’s policy to develop infrastructure and promote investment to enhance competitiveness (as outlined in Thailand’s Foreign Business Act). Investments included electric train projects, petroleum drilling, engineering and technical services, modern distribution center services and bio-food production.

INDUSTRY

CONSUMER AND RETAIL

Jasmine Technology Solution Public Company Limited Public Company Limited (JTS)

JTS announced a plan to relocate bitcoin mining from Thailand to the US due to electricity costs. It is not only to save cost but it also to improve the standard of Global Bitcoin Mining Farm.

Kijcharoen Engineering Electric PCL (KJL)

KJl aims to increase the revenue not lower than 10% within 2023, hence the company plans to use a 250 MB capital budget to buy new machines and settle new buildings.

Siam Makro  (MAKRO)

The MAKRO retail group was busy, generating a total revenue of 469,131 million baht in 2022. However, net profit dropped 43.8% to 7,697 million baht. The company also informed the Stock Exchange of Thailand (SET) of its board meeting’s resolution on February 20 to change the company name and stock symbol to CP Extra Plx or CPAXT.

Central Pattana Public Company Limited (CPN)

CPN Ltd., a public company, reports that in 2022 it had total income of 37,155 million baht, an increase of 28% from the previous year and net profit of 10,760 million baht. CPN confirms Central Westville project worth more than 6,200 million baht on Ratchaphruek location. Preparing to open in the fourth quarter of 2023.

MINOR 

The Pizza Company of Thailand and Delivery Business (1112 Delivery) has hired a new design team to rebrand the company for the first time in 22 years. Focusing on a new minimalist logo, an updated uniform, and store design, the business expects to open 40 new outlets this year, including 20 pick-up and takeaway sites catering to self-pickup customers.

Chayo Grou Pcl ( Chayo)

Debt collection company named Chayo, announced the past 2 months the company had bought NPL from the financial institution over 1,000 MB and is currently dealing with 2 Financial institutions to collect the NPL into portfolio management.

AMATA-WHA

According to Hyundai Mobility and Sihui Fuji Electronics Technology Co., Ltd  plans to set new electronic appliances,  AMATA and WHA is gaining the advantages of new foreign investment. Further, the 2022 profit is expected to be over 2000 MB for AMATA and Over 3500 MB for WHA.

POLITICS

Political Election

The upcoming general election is likely to stimulate consumption, with around 60-70 billion baht expected to circulate within the country’s economy. Retail stocks are expected to rise in anticipation of the vote. The electoral budget for the election is 5.9 billion baht ($170 million), 40% higher than the previous election held in 2019 (4.2 billion baht). According to Yuanta Securities, the market is expected to rebound by the time of election day.

ENERGY

Grimm Power Plc (BGRIM)

BGRIM has acquired a 100% share in RES Company Sicilia to develop the power generation from renewable resources in Italy. BGRIM is working with RES Company Sicilia to develop a solar farm project with electricity generation capacity of 100-200 megawatts and is searching for new business opportunities in Spain, Greece and Poland.

TRANSPORTATION

Mr. Saksayam Chidchob, Minister of Transport,revealed that the Ministry of Transport is considering the details of many projects to present to the Cabinet (Cabinet), which has time to present to the cabinet under the normal government term until the 23rd of March 2023.

STATION	SECTION	DISTANCE	PRICE BUDGET
Rangsit Station	Rangsit Center	8.84 km	฿6,448.69 million
Taling Chan	Salaya	14.80 km	฿10,670.27 million
Taling Chan	Siriraj	5.7 km	฿4,616 million
Utraphimuk Tollway Extension Project (Don Mueang Tollway)
(MS) Rangsit	Bang Pa-In	22 km	฿28,360 million
Chalong Rat-Nakhon Nayok-Saraburi Expressway Project
Chatuchot	Bankgkok Outer Ring Road Round 3 (MR10)	17 km	฿30 billion

**Sub urban rail project extension 3 routes 

Don Muang Tollway Public Company Limited (DMT)

Opens its performance in 2022, showing a net profit of 781 million baht, an increase of 93% from the previous year, and toll revenue of 1,832 million baht, an increase of 52%, from the previous year due to the volume of increased traffic on elevated roads after opening the city with foreigners coming back with revenue expected to grow beyond 30% with traffic expected to average at least 110,000 cars per day, an increase from last year at 85,000 cars per day which is based of traffic estimates from December 2022.

BEM

BEM announces fiscal year 2022 profit of 2.4 billion, growing 141% due to COVID-19 easing.The number of expressway users and electric train passengers had increased significantly in 2022 compared to 2021 the government opened the country to support travel, soaring. There are more than 1 million vehicles per day on the expressway. An average of 270,000 train passengers per day push revenue growth by almost 29% to 14.8 billion baht.

Increase in expressway users	Increase in electric train passengers
22.4%	84.5%

Operating income amounted to 14,030 million baht, an increase of 3,304 million baht or 30.8% from the previous year.

Increase in toll revenue	฿ 1,742 million
Increase in passenger and bus operator revenue	฿ 1,463 million
Increase in commercial development revenue	฿ 99 million

Cost of services amounted to 8,447 million baht, an increase of 1,458 million baht or 20.9%, from the previous year due to maintenance costs for both expressways and electric trains.

HEALTHCARE

Bangkok Dusit Medical Services Public Company Limited (BDMS)

Bangkok Dusit Medical Services Public Company Limited, or BDMS, has reported operating results for the year 2022. The company’s net profit was 12,606 million baht, an increase of 59% from last year and operating income was 92,968 million baht; this was an increase of 23% from last year. In terms of EBITDA margin, which measures profitability by looking at net income and expenses after taxes but before interest payments and other items such as depreciation expense, BDMS had an EBITDA margin of 22.9%; this compared with 23.2% in 2018.

TELECOMMUNICATIONS

TRUE-DTAC merger to TRUEE

The shareholders’ results were finally announced, with the new ticker symbol to be TRUEE. The new company capital was 138,208,403,204 baht divided into ordinary shares. 34,552,100,801 shares with a par value of 4 baht per share and Mr. Manass Manavutvej as Chief Executive Officer (CEO), Mr. Sharad Mehrotra as Deputy CEO and 34 authorized directors who signed together with Jögen Christian Aren Rosetrip or Las Eric Telmann.

BANKING 

Government Housing Bank (GHB)

The Cabinet on Tuesday approved the third phase of the low-cost housing scheme which is worth 20 billion baht for the Government Housing Bank, to promote and create opportunities for low- income earners, workers and the elderly. The maximum loan repayment period is 40 years, with a fixed interest rate of 3% per year for the first four years with the end date for the scheme at Dec 30, 2025.

AGRICULTURE

 Mr. Wattanasak Suea-iam, director-general of the Department of Internal Trade, revealed that the price of lemon number 1-2 in Bangkok has increased to an average of 5-7 baht per lime, up from the previous month at 3.90-4.50 baht per lime. As for the situation of lime, the higher price is due to the cold weather and drought, which is not conducive to growth. together with heavy rain and flooding in some areas

INDUSTRIAL

Thailand exported 86,000 cars in January, increasing by 24.8% compared to the same period last year, as semiconductor shortage has started to ease. In January, 157,844 cars were manufactured, up 4.02% over January of last year due to the country getting more supply of semiconductors with 65,579 cars sold domestically down 5.58% compared to January 2022.