Shares of Thailand’s leading integrated lifestyle real estate group Asset World Corp rose by 3% on Tuesday on expectations that the company’s earnings will exceed THB1.7 billion this year as a result of a strong rebound in the tourism industry.
As of 10.34 A.M. (Bangkok time), the share price of Asset World Corp rose Pcl. (SET: AWC) rose THB0.15/share, or 2.80%, to THB5.50/share, with a trading value of THB40 million.
Trinity Securities raised their revenue and profit forecasts for Asset World Corp. this year, predicting a rise of 18% year over year and a profit of at least THB1.7 billion on the strength of a stronger-than-anticipated recovery in average room rate (ARR) due to the peak travel season. In addition, analysts revised AWC’s gross profit margin (GPM) to 54.6% due to efficient cost management. Recommending “BUY” with a THB6.0 price target.
Thailand recorded a total of 4.2 million foreign visitors in the first two months of this year and generated more than THB142 billion of revenue, according to the data released by the Tourism Minister Pipat Ratchakitprakan.
The ministry expected to welcome about 30 million foreign visitors in 2023 as the country’s key driving force rebounds, following the border reopening, especially China. Despite tourist arrivals recording at the high-end of this forecast, it is lower than the record of nearly 40 million in pre-pandemic level of 2019, but undeniably a positive trend to the country that relied heavily on the tourism sector.
