1) Thai stock market overview
Thailand’s SET Index closed at 1,531.23 points, decreased 12.72 points or 0.82% with a trading value of 43 billion baht. The analyst stated that the Thai stock market edged lower, pressured by selloff in Delta Electronics (Thailand) Pcl from missing 1Q23 earnings expectations, while having a high valuation of 73x P/E. Brokers still recommended ‘Sell’.
2) Japanese brewer Kirin agrees to buy Blackmores at $1.2 billion
Japanese brewer Kirin has agreed to buy Australian vitamins maker Blackmores for $1.24 billion to diversify its business amid shrinking beer sales.
Kirin said that the acquisition of Blackmores is highly complementary to our existing Health Science business.
The diversification also shed some light to shareholders of Blackmores after years of soft returns. It sees shrinking sales as the habit of Chinese consumers who purchase vitamins at a large amount and carry them home ended with the Covid-19 outbreak. Before the announcement of making the deal with Kirin, share prices of Blackmores traded at only one-third their value in 2016, which was the height of the carry-home habit craze by Chinese consumers.
3) Analysts sees positive outlook for Thailand’s tourism as Chinese visitors surge
Assistant managing director of Kasikorn Research Center Kevalin Wangpichayasuk stated optimism about the Thai tourism industry on Thursday with Chinese state news agency Xinhua, citing the dramatic increase in the number of Chinese visitors to Thailand.
According to Kevalin, between January 1 and April 23, more than 737,000 Chinese tourists visited Thailand. This is a 300% increase over the same period a year ago, as a result of China lifting its harsh COVID-19 curbs late last year. This trend is anticipated to continue, Kevalin noted, as the current daily average of Chinese tourist arrivals is around 10,000.
However, she noted that the Thai tourism industry is also aware that Chinese tourists’ preferences have changed, as most current arrivals are young travelers and small group tours who are increasingly interested in local food and fashion and visiting new travel destinations like secondary cities.
As long as long-distance travel costs remain high and Thailand continues to provide valuable products and services, the country will continue to attract Chinese tourists, said Kevalin.
