MACROECONOMICS WEEKLY UPDATE

Thailand’s economy is still seen growing at 3.6% this year, the central bank chief said on Monday, in spite of some turbulence in the first half of the year. In addition, the Finance Ministry has lowered its 2023 economic growth outlook to 3.6% from 3.8% projected earlier, on expectations of a fall in exports as global demand weakens.

Exports dropped 4.2% in March from a year earlier, better than the forecast drop of 14% in a survey by Reuters economists with export value at $27.65 billion, with exports expected to pick up by the middle of the year with the imports valued at 24.93 billion dollars in March, a decrease of 7.1% resulting in a trade deficit of 2.71 billion dollars.

Thailand’s Manufacturing production index declined in March by 4.56% from a year earlier to 104.65 , due to the global economic slowdown hurting exports ; however, it had increased 5.47% MoM with the domestic trend improving.

 

The private consumption Index went down 0.2% MoM along with the reduction of the private investment -1.0% MoM in March; however ,fuel consumption in Q1 exceeded pre covid-level to an equivalent of 160.85 million liters a day

Government revenue collection in the first six months of fiscal 2023 (October to March) amounted to 1.163 trillion baht, which was 6.9% higher than the same period last year. The Finance Ministry’s Fiscal Policy Office (FPO) with the Revenue Department surpassing their target due to an expanding economy.

 

Thailand’s Manufacturing production index declined in March by 4.56% from a year earlier to 104.65 , due to the global economic slowdown hurting exports ; however, it had increased 5.47% MoM with the domestic trend improving

INDUSTRY

Media

Thailand’s event management industry is expected to grow by 25-30% to reach 16-17 billion baht this year as both the government and private sectors are rolling out events, particularly related to election campaigns.

Consumer & Retail

Home Product Center PCL (HMPRO)

 The company had a net profit for the first quarter of 1,611.12 million baht, an increase of 100.18 million baht or 6.63% compared to the same period last year. and had total income of 18,251.87 million baht, an increase of 1,579.35 million baht or 9.47%, mainly due to revenue from contracts with customers in addition to government stimulus.

Construction and Materials

COTTO Bathroom Shop (COTTO)

COTTO announces operating results for the first quarter of 2023 with revenue from sales of 3,458 million baht, an increase of 7 percent and profits increased by 23 percent from the company’s efforts to increase the price of some products. and controlling administrative costs together with improving production efficiency. 

Siam Center PCL (SCC)

SCC revealed a net profit in the first quarter of 16,526 million baht, an increase of 86.86%, but mainly from extraordinary items. While sales are still down 16%. Most of the profit came from the fair value adjustment of the investment in SCG Logistics from the consolidation of SCGJWD Logistics of the Cement-Building Materials business. Excluding special items, the profit was 4,516 million baht.

Banking

   Kasikorn Bank (KBANK)

               Kasikorn Bank has recently established “Ngern Hai Jai Company Limited” to engage in personal loans business with registered vehicles as collateral in which the loans are secured by vehicles along with car leasing.=

Packaging

SCG Packaging Plc  (SCGP)

SCG Packaging Plc (SCGP) had made a profit in the first quarter of 1,220 million baht and is acquiring a 70% share in Starprint Vietnam JSC (SPV) for 1.53 billion baht to take advantage of positive prospects in Vietnam for the growing demand of packaging products.

Tourism

Centara

Thailand’s leading real estate developer Central Pattana Plc is unveiling its new Centara Ubon Hotel, in a bid to offer a luxurious hotel experience in southern Isan.

The Erawan Group Public Company Limited (ERW)

The Erawan Group Public Company Limited or ERW said that the Board of Directors Meeting No. 3/2023 held on April 25, 2023 resolved to approve the establishment of a new subsidiary in Japan, Hop Inn Co., Ltd Ku Kabushiki Kaisha for hotel operations restaurants and souvenir shops car parks, travel agencies and retail business.

IPO

MGC

The Stock Exchange of Thailand (SET) will list Millennium Group Corporation (Asia) pcl, a fully integrated automotive business group, on April 26 under the ticker symbol “MGC”. The company has a market capitalization at its initial public offering (IPO) of THB 8.90 billion (approx. USD 259.02 million).

Automotive

Car production in Thailand rose 4.16% in March from a year earlier, to 179,848 units, as a shortage of microchips eased, the Federation of Thai Industries (FTI) said on Tuesday with exports of cars increasing by 4.84% in March YoY; however, domestic car sales dropped 8.37% when compared to last year.

 Thai Rung Union (TRU)

Mr. Sompong Phaoenchoke, President of the company set 2023 revenue growth of 10%, moving forward to expand the customer base and to increase income and find new products and create a new “EV” car to be sold.

Energy

               The government plans to allocate more than 11 billion baht to subsidize low-income earners for the period of May to August which should generate 10-20 billion Baht in economic activity over a four-month period and prevent a decline in GDP by 0.03-0.05%. The new rate will be a seven-satang reduction in the price of electricity from 4.77 baht a unit to 4.70 baht.

               In addition, fuel consumption in the first quarter this year exceeded its pre-Covid average level,  MLD in 2019 according to the Department of Energy Business in which the country consumed the equivalent of 160.85 million litres a day, due to tourism and the economic recovery as the key driver of fuel consumption.

Global Power Synergy Public Company Limited  (GPSC)

Mr. Worawat Pitayasiri, Chief Executive Officer and President of Global Power Synergy Public Company Limited (GPSC), revealed that the Board of Directors approved a capital increase of 2,500 million baht in Avada Energy Private Company Limited. Vet Company Limited (Avaada Energy Private Limited), which is in the Avada Group, a leading renewable energy business in India, in which GPSC holds a 42.93% stake through Global Renewable Synergy Company Limited. (GRSC) to use the money to refinance. and invest in renewable energy projects.

B.Grimm Power Public Company Limited  (BGRIM)

B.Grimm Power Public Company Limited or BGRIM stated that according to the company Has disclosed information to the Stock Exchange of Thailand regarding the acquisition of 45% shares of reNIKOLA Holding Sdm. Bhd. By B.Grimm Power Malaysia Sdn. Bhd. (B.Grimm Malaysia)

Healthcare

Bumrungrad Hospital (BH)

“Bumrungrad Hospital” opened a profit for the first quarter of 2023 at 1,583 million baht, growing 118.4% from the previous year, sweeping total revenues of 6,091 million baht, increasing 46.7% after patients using the service increased in both Thai groups and foreign when compared to the pre-covid era

SECTORAL UPDATE

The SET closed the week at 1,529.12 points, down 2.11 points (-0.14%), trading value 45,043.38 million baht.

SET Index Range for the week to be 1525 to 1540  and the USD/THB to be in the range of 34.00 to 34.30 .