The Russia-Ukraine war has stoked inflation fears further, roiling markets. It’s now time to think about attractive plays, not “what should I sell?” Domestic plays are currently the better choice, so BEC is good for position-taking. Moreover, ad spend high season runs 2Q-3Q22, so the firm’s earnings profile looks expansive for the quarters ahead. TRAIDNG BUY!
Russian invasion of Ukraine to have only limited impact
Total ad spend will recover in 2022 after two consecutive years of decline tied to COVID-19 effects. Although the Russia-Ukraine conflict may affect overall ad spend somewhat, it should sill grow from the very low bases set by 2020 and 2021. Most of the global brands in Thailand are FMCG products focused on basic health and hygiene and personal care—used daily by Thai households. We don’t see the Russia-Ukraine conflict having much impact on demand for FMCGs in 1Q22, so those brands will continue to advertise.