Equity Analysis /

Thailand: Industrial Estates - Land sales starting to increase

  • New sales growth after a two-year COVID-induced slump

  • AMATA to post strong quarterly earnings throughout 2022

  • WHA to host an EV ecosystem?

Bualuang Securities
21 October 2022

Industrial land sales are accelerating, led by manufac-turing migration from China and the easing of COVID-related travel rules. WHA is our top pick, premised on a strong 2H22-2023 outlook. Note that we have rolled over our investment horizon to YE23.

New sales growth after a two-year COVID-induced slump

The travel restrictions tied to COVID-19—which hit Industrial Estate operators’ land presales and transference—have eased. Land bookings recovered significantly in 2Q22 and should continue rising through 2022. We see several growth drivers for IE stocks, such as the emergence of an EV ecosystem in Thailand, the development of EEC infrastructure, and manufacturing migration to Thailand aimed at heading off geopolitical risk (such as a Sino-US trade war, Europe’s energy crisis, and carbon taxes). Both AMATA and WHA should mark strong land presales and transference for several years ahead.