Dao Securities said in today’s analysis (Dec 23 ’22) that China is preparing to reduce the holding day to 0 + 3 days from 5 + 3 days, which is expected to start in Jan ’22, China is preparing to plan a reduction in the day of detention for foreign tourists from 8 days (5+3 days) to 3 days (0+3 days) without the need for quarantine in government buildings. But he has to be kept at home for 3 days, starting January 2023 (Source: Bloomberg)
However, we have a positive view on the start of the quarantine easing, which is a positive sentiment for tourism that there is a possibility that China will further ease tourism measures in the future to allow Chinese people to travel overseas . the countries with the highest proportion of income in Thailand, with about 11 million Chinese tourists entering Thailand in the year 2019, accounting for 25% of the total tourists. in the belief that such easing would provide an opportunity to open up the country more quickly
For stocks Top Picks Still LikeThose who benefit from China are more likely to ease COVID measures, i.e. The Erawan Group Public Company Limited or ERW, recommending a purchase price of 5.20 baht, Bangkok Aviation Fuel Services Public Company Limited or BAFS recommending a price of purchase of 35.00 baht, Airports of Thailand Public Company Limited or AOT recommends a target purchase price of 82.00 baht, Asia Aviation Public Company Limited or AAV recommends a target purchase price of 3.30 baht, Siam Wellness Group Public Company Limited or SPA (Bloomberg consensus 11.82 baht), Ekachai Medical Public Company Limited or EKH recommend a target of 8.50 baht and WHA Corporation Public Company Limited or WHA recommend a purchase target of 4.60 baht.
ERW recommends a purchase with a target of 5.20 baht. It is expected to benefit from the higher income of Chinese tourists in the group at 12%, while the Occ. rate in mid-range and budget hotels is around 60%, which still has the capacity to accommodate many Chinese tourists.
BAFS recommends a purchase with a target of 35.00 baht. Take advantage of the trend of increasing flights from China, which will increase the volume of supplies. The company’s share of revenue from Chinese flights is about 10-15%.
AOT recommends a purchase target of 82.00 baht. Under normal circumstances, the income share of Chinese tourists is 15%, and AAV recommends a purchase target of 3.70 baht, resulting in an increase in Chinese passengers. And there is a possibility that China will increase the flight share in the future (Currently, AAV has 2 flights per week) Under normal circumstances, the tourist income share is 25%.
The SPA Party (Bloomberg Consent 11.82 baht) As the proportion of revenue from China is 50-55%, while EKH recommends a target price of 8.50 baht from admission to IVF centers, which previously accounted for about 10% of China’s revenue. 300 pairs in 2023, with China expected to return to service in Q2 23. If China opens up the country sooner than expected, it will be a boon for IVF revenues.
WHA recommends buying with a target price of 4.60 baht. by investors who will travel more to Thailand, plus pre-sales and transfer sales which will be of a high standard
