Thailand Microeconomic Weekly Update #21

MACROECONOMICS WEEKLY UPDATE

Headline Inflation is up 2.67% in April from a year earlier compared with to a forecast rise of 2.70% in a Reuters poll, and against March’s 2.83% increase with the core inflation index up 1.66% in April from a year ago and under a forecast increase of 1.70%.
 
The Office of Small and Medium Enterprises Promotion (OSMEP), reveals the results of a survey on the debt situation of SME entrepreneurs in the first quarter of 2023 for March was found that 63.7% of entrepreneurs had debt obligations in their businesses.
 
The Thai National Shippers’ Council (TNSC) has revised its export growth forecast for Thailand, predicting a 0-1% increase due to negative factors and uncertainty in the US and Chinese economies.
 
 
The Bank of Thailand (BOT) revealed that the Business Sentiment Index in April stood at 50.1, down from 52.9 in March. This was mainly due to a decline in production confidence operating results and purchase order from fewer working days in the previous month.
 
Thailand’s rice exports rose 8.48% year on year to more than 2 million tonnes in the first quarter of this year, government spokesperson Anucha Burapachaisri said on Tuesday. 
 
Thailand built or expanded 1,211 factories during the first half of fiscal 2023 with an investment value of 113 billion baht, generating more than 30,000 jobs, according to the Industry Ministry.
 
 

INDUSTRY

COMMERCIAL AND RETAIL

Shopee Pay (Thailand) Company Limited

          On May 1, 2023, Mr. Lavaron Sangsanit, Director-General of the Revenue Department, and Ms. Maneerat Anulomsombat, Director of Shopee Pay (Thailand) Company Limited, signed a memorandum of cooperation with Shopee Pay (Thailand) Company Limited. This to accept tax payment online through the Shopee and ShopeePay applications starting on May 1,2023.

BANKING

 Thai Credit Retail Bank Public Company Limited

       The Thai Credit Retail Bank Public Company Limited (“the Bank”) aims to be listed on the Stock Exchange of Thailand. (“SET”) approximately within the year 2023 by filing a registration statement for the offering of securities and draft prospectus (filing) to the Office of the Securities and Exchange Commission (“SEC”). ) for the initial public offering (IPO) on May 2, 2023, setting a record in the past 10 years as a stock in the banking group that has submitted a filing for listing on the SET. This fundraising aims to strengthen the bank’s capital position.

PROPERTY

Jen Kongklai Public Company Limited (JPARK)

        Jen Kongklai Public Company Limited (JPARK) has filed an IPO financing of 110 million shares or 27.50% of paid-up capital after IPO to mai trading. JPARK has expertise in the area management business. The company is a service provider related to parking space management, divided into 3 main businesses:

1. Parking service business (Parking Service Business: PS)

2. Parking Management Service Business: PMS)

 3. Consulting business and installation of parking management systems (Consultant and Installation Parking System Business: CIPS). After fundraising, JPARK plans to invest in expanding the project of a 6-storey parking building of Phranangklao Hospital.

 WHA Corporation Public Company Limited (WHA)

       The WHA Board approved an investment of THB 912 million in Siamrajathanee (SO), representing 20% of the company’s shareholding equity. This investment aims to drive WHA’s integrated business, by enhancing services for its customers to serve the growth in Logistics and Smart Industrial Estates.

Origin Property Company Limited

      Origin Property Company Limited collaborated with Token X, and Real Estate Exponential, launching more than 19 million tokens with an investment price of 182 baht per token (3.458 billion baht in total). This ICO will be backed by Park Origin high-rise condominiums located in the CBD areas which are Phrom Phong (138 units), Phaya Thai (123 units), and Thonglor (100 units). With concerns about purchasing power combined with the scarcity of prime locations, this investment innovation solves pain points both for investment and the challenges of the Thai real estate sector at this time.

TOURISM

King Power International Company Limited

      King Power International Company Limited diversifies its business portfolio as foreseeing the recovery of tourism. The company has restructured its business divided into 8 business groups as follows: Duty-Free, Retail, Food, Hotel, Consumer Goods, Experience Creation, Sports, and a group of social activities (CSR) to further expand the upcoming business operations. The investment budget for Duty-Free and Retail is approximately 4,000 million baht.

LOGISTIC

Asia Network International Company Limited (ANI)

     Asia Network International Co., Ltd. (ANI), a joint venture between Triple i Asia Cargo Company Limited and Singapore partner proceeds the IPO filing in SET. The fundraising aims to expand their business. The ANI is a General Sales Agent (“GSA”) for airlines presence in over 20’s top tier airlines in Thailand, Hongkong, China, Vietnam, Singapore, Malaysia, Cambodia, and Myanmar.

HEALTH CARE

Vibhavadi Hospital Public Company Limited (VIBHA)

      On May 3,2023, Vibhavadi Hospital Public Company Limited cooperated with Bangkok Mass Transit System Public Company Limited (BTSC) opening  a Jab and Go Clinic. The clinic provides easy access to essential vaccine and medical services in Phaya Thai BTS for urban people. The medical clinic will be open for people aged 9 years and over and every step is under the supervision of a team of doctors and nurses of Vibhavadi Hospital. The clinic will be open every day from 10.00 – 20.00 with a special price and can be paid in installments with the bank that the hospital has contracted to provide vaccines, the clinic can also accommodate other medical services such as medical certificates for 5 diseases, 6 diseases, cosmetic products.

Bangkok Chain Hospital Public Company Limited (BHC)

       Bangkok Chain Hospital Public Company Limited revealed that the company signed a joint venture agreement with Innovation Quality Expert Co., Ltd. (Innovation) on May 2, 2023, by establishing a new joint venture named Health Zen Innotech Co., Ltd.

CONSUMER PRODUCT

Moong Pattana International Public Company Limited (Moong)

       Moong Pattana International Public Company Limited revealed the operating result for the first quarter ended March 31, 2023, that net profit decreased from 14.8 million baht in Q1/2022 to 9.1 million baht in Q1/2023, a decrease of 5.7 million baht or 38.5%. As a result of dropped in sale revenue and an increase of selling and administrative expenses.

MEDIA

Major Cineplex Group Public Company Limited (Major)

    Major Cineplex Group Public Company Limited, the largest operator of movie theaters in Thailand, revealed that the profit in the second quarter of 2023 will hit the highest of the year. Supported by both movie business and income outside movie business.

SECTORAL UPDATE

The SET closed at 1,533.30 points, up 4.87 points (+0.32%), trading value of 54,974.69 million baht. on the 3rd of May 2023

 Expecting movement in the range of 1,515-1,530 points, with a technical rebound and the market waits for clarity on upcoming elections and consumer confidence to be released next week

USD/THB Range

34.00-34.30

RSI

33
 
 
Foreign Investors are still net Sellers as there is uncertainty over elections that are coming soon.
 

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