Introduction
The recent UOB Kay Hian report reveals a comprehensive strategy for the Thai equity market, detailing key themes and stock recommendations for the first half of 2025. The report highlights an optimistic outlook driven by potential foreign investments and evolving government policies.
Key Themes Driving the Thai Equity Market
The report identifies four main themes set to boost the Thai equity market in 1H25. These include balanced GDP growth supported by private investment and international tourism, beneficiary sectors from government policies, policy rate normalization, and a new investment cycle influenced by U.S. political changes.
Stock Analysis: AMATA Corporation
Recommendation: Buy
Current Price: Bt29.00
Target Price: Bt35.00
Upside Potential: 20.69%
AMATA Corporation stands out as a top pick due to its strategic positioning in the industrial estate sector. The company is set to benefit from Thailand’s new investment cycle, particularly with the influx of data centers and entertainment complexes. With a projected market cap of \$1,008 million and a promising PE ratio trajectory from 16.4x in 2023 to 11.8x in 2025, AMATA is poised for significant growth.
Stock Analysis: CP All (CPALL)
Recommendation: Buy
Current Price: Bt62.75
Target Price: Bt85.00
Upside Potential: 35.46%
CP All, a leader in the retail sector, is expected to be a major beneficiary of government policies aimed at boosting consumption and reducing household debt. The company’s market cap stands at \$17,040 million, with a forecasted EPS growth of 11.1% in 2025. Its PE ratio is projected to improve significantly, making it a compelling investment opportunity.
Stock Analysis: Kasikornbank (KBANK)
Recommendation: Buy
Current Price: Bt156.50
Target Price: Bt190.00
Upside Potential: 21.41%
Kasikornbank is anticipated to gain from the policy rate normalization due to its strong financial positioning. With a market cap of \$11,209 million and a robust ROE of 9.1%, KBANK is set to leverage the favorable economic environment. The bank’s PE ratio is expected to decrease, enhancing its attractiveness to investors.
Stock Analysis: Muangthai Capital (MTC)
Recommendation: Buy
Current Price: Bt49.25
Target Price: Bt64.00
Upside Potential: 29.95%
Muangthai Capital is positioned for growth in the consumer finance sector, benefiting from lower funding costs linked to floating rates. With a market cap of \$3,156 million and an impressive EPS growth forecast of 29.3% in 2025, MTC offers a strong value proposition for investors.
Stock Analysis: True Corporation (TRUE)
Recommendation: Buy
Current Price: Bt11.80
Target Price: Bt14.50
Upside Potential: 22.88%
True Corporation is set to capitalize on the burgeoning telecommunication and power plant sectors. The influx of investments from major technology companies in data centers is expected to drive significant earnings growth. Despite the absence of a PE ratio for 2023 and 2024, the company shows potential for a strong rebound by 2025.
Conclusion
The UOB Kay Hian report underscores a promising outlook for the Thai equity market in 1H25, with strategic stock picks poised to benefit from favorable economic and policy environments. Investors are advised to consider these insights as part of their investment strategies for 2025.
