THAILAND MACROECONOMICS WEEKLY UPDATE

FOOD AND BEVERAGE

Mrs. Oramon Supthaweetham, the Director-General of the Department of International Trade Negotiations, has highlighted the promising prospects for pet food products in the global market. Over the past decade, Thailand has consistently exported an average of 1.6 billion US dollars per year, experiencing a growth rate of 14% annually. Key export destinations such as China, India, the United States, and ASEAN countries are currently witnessing significant growth. Thailand holds the top position as an exporter within ASEAN and ranks fourth globally. The department strongly encourages Thai entrepreneurs to leverage Free Trade Agreements (FTA) to expand their presence in 15 trading partner countries, benefiting from the elimination of import duties. Continuous monitoring of the export situation has revealed the sustained expansion of the pet food market, which reached a global value of $100 billion in 2022. It is projected to grow at an average annual rate of 5%, reaching a value of $170 billion by 2029, driven by the rising number of pets worldwide.

Sappe Public Company Limited (SAPPE)

Sappe Public Company Limited, a leading manufacturer and distributor of beverage products with a domestic and international presence, has partnered with Power Root Berhad, a renowned global beverage company based in Malaysia, specializing in coffee, tea, and chocolate malt. This collaboration aims to mutually expand their businesses, diversify their product portfolios, and enhance sales channels through cooperation.

Oishi Group Public Company Limited (OISHI)

Oishi Group Public Company Limited, a well-known Japanese restaurant and green tea beverage company, has agreed to Thai Beverage Public Company Limited’s tender offer for all ordinary shares, amounting to THB 4.5 million. The company expects to proceed the tender offer process by June 15, 2023. Additionally, they have put forth a proposal to the shareholders’ meeting for the delisting of their securities from the Stock Exchange of Thailand (SET). This strategic decision is aimed at improving business management flexibility and facilitating restructuring initiatives. Furthermore, delisting from the SET will result in reduced expenses associated with being a listed company.

COMMERCE AND RETAIL 

RS Public Company Limited (RS)

RS Public Company Limited, a company involved in commerce, entertainment, music, and various other businesses, is planning to conclude three additional merger and acquisition (M&A) and joint venture (JV) deals by the end of 2023. This decision comes after a positive business performance in the second quarter, aligning with the expected budget. In the next half year, the company will place greater emphasis on its commerce division, aiming to drive revenue growth and enhance the overall impact on the RS group. Furthermore, they are set to launch the first flagship store for RS Pet All, a new venture in the pet industry, during this quarter.

PROPERTY DEVELOPMENT 

Richy Place 2002 Public Company Limited (RICHY)

Ms. Pichaya Tansod, CEO of Richy Place 2002 Public Company Limited, announced the successful opening of The Rich Resident Hotel in The Rich Ploenchit-Nana project, in collaboration with partners like Kokotel. The response to the hotel’s launch in the first phase exceeded expectations, with an impressive occupancy rate of 92%. The tourism industry has shown clear signs of recovery, with a notable increase in the number of energetic tourists. Building upon this achievement, the company intends to expedite the opening of Phase 2 in the near future.

One Origin Public Company Limited

One Origin Public Company Limited, a prominent player in the hotel and service sector of the real estate industry, has filed for listing on the Stock Exchange of Thailand (SET) and plans to launch an Initial Public Offering (IPO) with a maximum of 702,000,000 shares. The company aims to raise capital to strengthen its business model, focusing on generating consistent and continuous income. This growth strategy encompasses four main business groups: hospitality, retail and office building, food and beverage, and other related ventures. By expanding its operations, One Origin aims to drive the organization towards sustainable growth.

ENERGY AND UTILITIES

Global Power Synergy Public Company Limited (GPSC)

Global Power Synergy Public Company Limited, a company involved in power generation, steam production, utilities distribution, and related business both domestically and internationally, has entered into a Memorandum of Understanding (MOU) with Meranti Steel Pte., Ltd., a renowned metal distributor based in Singapore. The purpose of this collaboration is to jointly explore the feasibility of developing clean energy power solutions and implementing environmentally friendly power management practices in metal production.

SERVICE 

Meb Corporation Public Company (MEB)

Meb Corporation Public Company, a distributor of electronic books, audiobooks, electronic reading devices (E-readers), and related services, has recently approved the establishment of a new subsidiary called “Khring Khring Ltd.” This subsidiary will specialize in enterprise software and/or digital content operations.

TOURISM AND LEISURE  

U-Tapao International Aviation Co.,Ltd. (UTA)

U-Tapao International Aviation Co., Ltd. has announced its intention to raise the registered capital from THB 4,500 million to THB 15,000 million, representing an increase of THB 10,500 million. This capital expansion aims to facilitate the expansion of the airport, with the goal of accommodating up to 60 million passengers annually.

SECTORAL UPDATE