THAILAND MACROECONOMICS WEEKLY UPDATE

FOOD AND BEVERAGES 

Asian Sea Corporation Public Company Limited (ASIAN)

Mr. Ekkamol Prasoppolsujarit, Chief Financial Officer of Asian Sea Corporation Public Company Limited, a company involved in manufacturing and distributing frozen food, announced the need for strategic adjustments to address challenges arising from external negative factors, particularly in the United States of America, a crucial export market for animal food and frozen products. Due to inventory reduction and a shorter ordering period, customers have postponed their orders. As a result, the company will closely monitor the situation and adapt accordingly.

Minor International Public Company Limited (MINT)

Mr. Thunyachate Ekvetchsvit, the Chief Operating Officer of Minor Group Plc., targeted a revenue growth of 17-20%, equivalent to around THB 31-33 billion. The company anticipates double-digit growth in the latter half of the year, driven by positive factors such as the recovery of regional domestic markets and the travel sector.

SERVICE

One to One Contracts Public Company Limited (ONO)

One to One Contracts Public Company Limited, a leading provider of outsourced contact center services and turnkey solutions, has revealed its expansion into a new business line focused on Climate Tech-Energy-Carbon Credit-EV bikes. The company aims to drive growth and innovation by capitalizing on this market, with a funding target of over THB 3 billion. This strategic move is supported by the strong momentum of the mega trend in the industry.

BANK 

Bank of Ayudhya Public Company Limited (BAY)

Bank of Ayudhya Public Company Limited, the fifth largest universal bank in Thailand, recently achieved a significant milestone through its acquisition of shares in SHBank Finance Company Limited (“SHB Finance”), a prominent private equity financing firm in Vietnam. The acquisition initially involves a 50% stake, with the remaining shares set to be transferred within the next three years, subject to the fulfillment of terms and conditions mandated by relevant regulatory authorities. This development plays a crucial role in solidifying Krungsri’s position as a “Regional Bank.”

FINANCE AND SECURITIES 

Krungthai Car Rent and Lease Public Company Limited (KCAR)

Krungthai Car Rent and Lease Public Company Limited, a leading provider of operating lease services, has introduced an innovative business model catered to individuals seeking to change their car annually. Under the “Car Subscription” model, clients can enter into a short-term contract of just one year, offering a cost-effective alternative to purchasing a new car. With an initial monthly cost of THB 21,900, clients can enjoy the benefits of this model and have the flexibility to switch to a new red-label electric car without the need for a down payment.

PROPERTY

WHA Corporation Public Company Limited (WHA)

WHA Corporation Public Company Limited, a prominent provider of comprehensive logistic services which classifies into 4 business hubs i.e. Logistics Hub, Industrial Development Hub, Utilities & Power Hub, and Digital Platform Hub, recently announced that the land sales achieved outstanding results by surpassing the initial target of 1,750 rai. The company successfully secured sales and Memorandum of Understanding (MOU) agreements covering a total area of 1,240 rai, which accounts for 71% of the company’s target. Furthermore, WHA Corporation anticipates entering into land sales contracts with a minimum of two electric vehicles (EV) manufacturers, encompassing approximately 250 rai, inclusive of the areas mentioned in the MOU.

ENERGY AND UTILITIES

PTT Public Company Limited (PTT)

On May 19, 2023, Mr. Pongpan Amornwiwat, the Executive Vice President of the International Trading Business Unit at PTT Public Company Limited, unveiled their plans for the year. They anticipate importing 60 short-term shipments of liquefied natural gas, also known as LNG SPOT, each carrying approximately 65,000 tons. This amounts to a total of 3.9 million tons, signifying a one million ton increase compared to the preceding year’s 53 imported shipments, totaling 3 million tons. The primary utilization of these imports will be for electricity generation purposes.

Bangchak Corporation Public Company Limited (BCP)

Bangchak Corporation Public Company Limited, a company operating in the oil refinery and trading sector, has partnered with SME D Bank to establish a memorandum of understanding for business collaboration. The primary objective of this collaboration is to provide financial services and support to small and medium-sized enterprises (SMEs) at Bangchak gas stations. The total amount allocated for this initiative exceeds THB 25 billion. Notably, SMEs can benefit from a special interest rate, starting at 4.5% per year, and enjoy flexible installment plans that span up to 15 years.

TECHNOLOGY

Bitkub Ventures Co., Ltd.

Bitkub Ventures Co.,Ltd, the investment arm of Bitkub Capital Group, has signed a Memorandum of Understanding with Chao Tui aiming to utilize blockchain technology to develop and conserve Thai buffaloes, elevating the Thai buffalo industry to the international level.

INFORMATION AND COMMUNICATION TECHNOLOGY

Samart Corporation Public Company Limited (SAMART)

Teda Co., Ltd., a subsidiary of Samart Corporation Public Company Limited, has formed a consortium with The Joint Venture of China National Heavy Machinery Corporation & Future Electrical Control Company Limited. Together, they have been awarded a contract by EGAT (Electricity Generating Authority of Thailand) for the supply and construction of 500 kV transmission lines. The awarded lines include Mae Moh 3 – Lamphun 3, Mae Moh 3 – Tha Tako, and Mae Moh 3 (Existing 500 kV Conventional Substation) – Mae Moh 3 (New 500 kV GIS Substation). The consortium operates under the names “The Consortium of TEDA Company Limited” and “The Joint Venture of China National Heavy Machinery Corporation & Future Electrical Control Company Limited,” with a proportional share of 54:46. The contract, valued at THB 1.1 billion, was received on May 15, 2023.

INDUSTRIAL

Cho Thavee Public Company Limited (CGO)

Cho Thavee Public Company Limited, a design, inventing, and manufacturing of commercial automotive engineering systems including rail technology and defense industry products, declared a payment default on CHO212A debentures, an amount of THB 34.99 million. The company was unable to pay some principal and interest on such a due date as a result of a lack of liquidity. However,  the default on the payment of some of the principal and interest does not result in the Company having to immediately pay off all outstanding debentures (Call Default) as it has to take actions as specified in Clause of the Terms and Conditions.

REAL ESTATE 

TRANSPORTATION AND LOGISTIC

Don Muang Tollway Public Company Limited (DMT)

Don Muang Tollway Public Company Limited, a prominent toll road operator overseeing projects from Din Daeng to National Memorial Section, has reported a substantial growth in the overall average daily traffic volume. With a staggering increase of 58% compared to the same quarter last year, the average daily traffic volume now stands at 107,655 vehicles per day. The company is confident that this positive trend will continue, leading to a projected total revenue exceeding 30%. This confidence is bolstered by the increasing inclination of individuals to engage in outdoor activities, as well as businesses resuming operations and the commencement of the new semester.

SECTORAL UPDATE