Kiatnakin Phatra Securities (KKPS) stated that the end of China’s Covid-19 policy, allowing inbound travellers to enter the city without the requirement for quarantine will be a positive factor for AOT, CENTEL, ERW and AAV.
Meanwhile, the retail sector such as CPALL, CRC and MAKRO will benefit from China reopening as well. KKPS expected traffic for CPALL to return to pre-covid level as SSSG would recover to offset electricity bills. The firm noted that every 1% that CPALL beat its estimations, there would be an upside to earnings by 2%.
As for the refinery, KKPS preferred SPRC, while on the chemical segment it preferred PTTGC as demand should rebound following the reopening.
SIRI, ORI and SC are big corporates in the property sector to benefit from China’s reopening, while SPA and AU as a small-cap stock should gain benefit.
In addition, the potential for a new stimulus “We Travel Together Phase 5” by the cabinet should boost these sectors as well.
