JPMorgan Sees Bull Case for SET Index at 2,000 in Thailand Upgraded Equities Outlook

published 19 h ago · en · source ↗

Affected tickers

BBL BE CPALL DELTA GLOBAL HANA JPM MAJOR TRUE

Per-ticker News Sentiment Indicator

BBLother · positive · med
JPMorgan upgraded its outlook on Thai equities and identified BBL as a standout pick poised to benefit from improving market conditions and a stable political backdrop.
BEother · neutral · high
The article focuses exclusively on the Thai SET index and specific Thai equities, containing no information or material impact regarding Bloom Energy Corp.
CPALLanalyst_rating_change · positive · med
JPMorgan upgraded its outlook on Thailand equities and specifically identified CPALL as a standout pick poised to benefit from improving market conditions and a stable political backdrop.
DELTAother · positive · med
JPMorgan identified DELTA as a preferred stock due to its ongoing relevance in datacenter power infrastructure and global AI-linked capital expenditure.
GLOBALmacro · neutral · med
JPMorgan remains cautious on the Consumer Discretionary sector, which includes GLOBAL, despite an overall upgrade to the Thai equity market outlook.
HANAother · positive · med
JPMorgan identified HANA as a pivotal pick due to its breakthrough with AI customers, which provides significant optionality for the company.
JPMother · neutral · high
The article discusses JPMorgan's outlook on the Thai equity market and specific local stocks, but provides no material news or financial updates regarding JPMorgan Chase & Co. itself.
MAJORmacro · neutral · high
JPMorgan remains cautious on the Consumer Discretionary sector, which includes MAJOR, despite an overall upgrade to the Thai equity market outlook.
TRUEother · positive · med
JPMorgan upgraded its outlook on Thailand equities and specifically identified TRUE as a standout pick poised to benefit from improving market conditions and a stable political backdrop.

Article body

JPMorgan has upgraded its outlook on Thailand equities to ‘Neutral,’ spotlighting TRUE, CPALL, and BBL as standout among other picks poised to benefit from improving market conditions, noting that a stable political backdrop is fueling public spending and supporting domestic business confidence. This renewed optimism has sparked a capital expenditure cycle, with an improved outlook for earnings growth, liquidity, and undemanding investor positioning attracting foreign capital back to Thai markets. The report remains constructive on the prospects for sectors linked to global AI infrastructure. JPMorgan highlighted the ongoing expansion in datacenter-related capex, which provides an earnings upside for Thai electronics firms. Delta Electronics (DELTA) remains JPMorgan’s preferred stock due to its prolonged DC power relevance. Meanwhile, Hana Microelectronics (HANA) has been highlighted as a pivotal second pick, given its breakthrough with AI customers that provides significant optionality compared to domestic peers. The bank acknowledged downside risks from elevated energy prices, which could pressure consumer sentiment as Thailand relies heavily on oil and gas imports. While inflation concerns persist, JPMorgan economists expect the Bank of Thailand to maintain its policy rate at 1.00% through 2026-27, as inflation remains under control. Consumer sector stocks might face headwinds from rising input costs, but energy and utility sectors could benefit from earnings support. Regarding currency movements, JPMorgan believes the recent devaluation of the Thai Baht against the US Dollar is unlikely to be a major concern, as it could enhance the competitiveness of exports and bolster tourism revenues. The bank’s 12-month targets for the SET index are 1,400/1,800/2,000 in bear, base, and bull scenarios respectively, reflecting about a 9% earnings upgrade over the coming year. JPMorgan favors IT, Telecom, Financials, and Healthcare sectors, while remaining cautious on Consumer Staples and Consumer Discretionary. Top stock picks include TRUE, BH, DELTA, HANA, BBL, CPALL, and MRDIYT.