Equity Analysis /

Thailand: Industrial Estate - Reopening catch-up plays

  • Laggard plays among reopening themes

  • Time for manufacturers to purchase land

  • Play ahead of China lifting its zero-COVID policy

Kijapat Wongmetta
Kijapat Wongmetta

Equity Research Analyst

Bualuang Securities
22 June 2022

The stock prices of both AMATA and WHA have been squeezed by China’s zero-COVID policy, which opens an opportunity to take or build positions at bargain prices. Once Beijing gives some sign of lifting or easing that policy, the prices of both AMATA and WHA will surge ahead of the release of pent-up demand.

Laggard plays among reopening themes

Most reopening stocks (such as Hotel, Healthcare, and Transport) have rallied in the range of 5-40% YTD and 2-19% QTD. In contrast, AMATA’s price has declined by 10% YTD and 14% QTD and WHA’s by 13% YTD and 9% QTD. Their weak price performances are due to low land presales in 1Q22, we believe. That opens an opportunity to accumulate both stocks at bargain prices. We expect both presales and transference numbers to rise in 2Q22, led by the easing of cross-border travel restrictions among many countries.