The stock price of a tourism-related company rallied on Wednesday, outperforming the SET index during a volatile trading session, after Thailand’s year-to-date foreign arrivals reached a record high in three years.
As of 11.14 A.M. Bangkok time, the share price of Minor International Pcl. (SET: MINT) rose THB0.50/share, or 1.46%, to THB34.75/share, with a trading value of THB108 million.
The share price of S Hotels and Resorts Pcl. (SET: SHR) rose THB0.02/share, or 0.59%, to THB3.40/share, with a trading value of THB7 million.
The share price of Airports of Thailand Pcl. (SET: AOT) rose THB0.25/share, or 0.35%, to THB72.50/share, with a trading value of THB384 million.
The Minister of Tourism and Sports reported on Tuesday that Thailand has received about 11.8 million foreign tourists so far this year, a three-year high thanks to the influx of Chinese tourists.
China, Malaysia, India, Singapore, and South Korea were Thailand’s top five source markets from the beginning of the year to date.
The Tourism Authority of Thailand expects to see 30 million arrivals this year as China has reopened the border. Still, the figure is well below the pre-Covid level of nearly 40 million.
Yuanta Securities predicts that stocks related to airports (AOT, TP THB84.0) and hospitals (ERW, CENTEL, SPA) will see significant gains due to the flood of international visitors.
The robust uptick in passenger traffic in 2Q23 is anticipated to boost AOT’s bottom line and increase the firm’s income. Normal profit for the second quarter is anticipated to reach THB3,700 million, an increase of 92% quarter-over-quarter and a turnaround from the previous year’s loss.
As for hospitality stocks, Yuanta favors ERW (TP THB5.0), CENTEL (TP THB51.5) and SPA (TP THB11.9), with optimism bolstered by a robust rebound in international arrivals; however, the brokerage firm sees limited share price upside. Therefore, AOT is deemed the sector’s top pick.
