THAILAND MACROECONOMICS WEEKLY UPDATE

Consumer confidence improved after a new government was finally formed months after the May 14 general election, increasing to 56.9 from in August from 55.6 in July, according to the University of the Thai Chamber of Commerce.

MEDIA 

JKN Global Group Public Company Limited (JKN)

JKN’s stock experienced an upswing following the announcement of its partnership with Top News Digital Media Company Limited (“Top News”) for collaborative news and content production on the JKN18 channel. JKNBL, holding the broadcasting rights, has received approval from the National Television and Telecommunications Commission (“NBTC”) to continue its television business operations. Simultaneously, JKN has opted to end its co-production agreement with CNBC.Furthermore, JKN has initiated a company restructuring effort by disclosing plans to reduce its workforce by 50-60 employees, with compensation arrangements in accordance with labor laws.

INFORMATION & COMMUNICATION TECHNOLOGY

Advanced Info Service Public Company Limited (ADVANC)

Advanced Wireless Network Company Limited (AWN), a subsidiary of Advanced Info Service Public Company Limited, has entered into agreements with National Telecom Public Company Limited (NT) worth THB 14.8 billion. These agreements involve AWN providing telecommunication equipment rental to NT to provide 5G mobile services on NT’s 700 MHz spectrum. The project aims to construct 13,500 base stations across Thailand within a 2-year period, ending on March 31, 2036. Additionally, there’s a National roaming service agreement in place, allowing NT users access to the 700 MHz Spectrum Agreement. ADVANC, the parent company, will receive rental revenue and roaming fees according to the agreement terms.

TRANSPORTATION AND LOGISTICS

Transport Minister Suriya Jungrungreangkid has announced plans to pilot a 20-baht flat fare on the MRT Purple Line and the State Railway of Thailand (SRT) Red Line within the next three months as a “New Year’s gift” to the public. The implementation of the flat-rate policy might take up to six months, as it involves gathering all train line concessionaires and establishing a negotiation committee to deliberate on the policy. However, the scope of the flat-rate policy remains uncertain due to the absence of a clear direction regarding investments in the transportation system, as noted by an opposition MP.

INDUSTRIAL

Teera-Mongkol Industrial Public Company Limited (TMI)

Mr. Teerachai Prasitrattanaporn, the Chairman and Managing Director of TMI, a company engaged in the manufacture and distribution of electric lighting equipment and renewable energy production, has revealed the company’s entry into the carbon credit market. TMI’s third biological power plant, boasting a 3-megawatt capacity located in Suphanburi Province, is operational and has made significant strides in reducing carbon dioxide emissions approximately 92,000 tons per year. This strategic move comes as the European Commission enforces measures to reduce emissions, effective from October 1, 2023.

TMI is actively engaged in discussions with foreign funds from Singapore, Japan, and Europe with the aim of selling 92,000 tons of existing carbon credits. The interest from these funds is driven by their investment criteria, TMI anticipates reaching agreements by the fourth quarter of 2023, initially through short-term contracts lasting 1-2 years, with plans to transition to long-term contracts.

AUTOMOTIVE 

Chai Watana Tannery Group Public Company Limited (CWT)

Chai Watana Tannery Group Public Company Limited, a player in leather finished products manufacturing and exporting, has announced the signing of a power purchase agreement (PPA) for a waste-to-fuel and energy project. This project, based in Kamalasai Subdistrict Municipality, Kalasin Province, aims to convert solid waste into electricity. It is operated by Kalasin Rungruang Bio Power 2012 Company Limited, an indirect subsidiary of Chai Wattana Green Company Limited, a subsidiary of Chai Watana Tannery Group. The project will dispose of waste and produce electricity from solid waste fuel (RFD) with a capacity of 6 MW and will sell 5 MW of electricity to the Provincial Electricity Authority (PEA). The project is expected to generate revenue by 2025, with a 25-year duration and 20 years of PEA support. The company plans to supply electricity to the commercial system in 2025-2026 at a rate of 5.08 THB/unit with an additional premium of 0.70 baht/unit for 8 years.

COMMERCE

CP Axtra Public Company Limited (CPAXT)

CP Axtra Public Company Limited, an established wholesale enterprise, has introduced a pioneering concept known as ‘Hybrid Wholesale.’ This innovative approach combines Makro’s renowned wholesale capabilities with Lotus’s expertise in mall management. This strategic synergy is designed to meet a wide spectrum of customer requirements, offering a diverse range of products sourced locally and curated from around the world, all at wholesale prices. ‘Hybrid Wholesale’ presents a fresh retail format that addresses both the demands of businesses and the contemporary lifestyle preferences of the new generation of entrepreneurs. CP Axtra is eagerly preparing to launch the Hybrid Wholesale store in Thailand in the near future.

SECTORAL UPDATE

                                                                                               (SET closed the week at 1,542.03 points, down 3.11 points (-0.20%), trading value 52,066.56 million baht)