Asia Plus recommends 3 standout stocks to weather rising bond yields

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Summary · why it matters

The research team at Asia Plus Securities recommends three Thai stocks with company-specific positive factors and clear growth prospects, amid rising bond yields and a volatile stock market. COM7 is expected to post year-on-year profit growth in the third quarter of 2026, driven by its UFUND lending business and ICARE insurance, with momentum likely to accelerate in the fourth quarter of 2026 during the high season. ADVANC is expected to show both quarter-on-quarter and year-on-year profit growth in the third quarter of 2026, while its share price remains a laggard, up about 10% year-to-date, compared with TRUE, which is up 17% year-to-date. CK has seen its litigation risk ease, state budget disbursement for 2027 is proceeding normally, and its subsidiaries BEM, CKP and TTW help reduce volatility in its consolidated earnings. The research team notes that the surge in Thai bond yields directly affects stock market valuations, cutting the market's appropriate P/E level as estimated by the ASPS research team from 18.18 times to 16.39 times, pressuring the SET Index over the remainder of the year down to 1,550 points if all assumptions remain unchanged. However, the index target could recover to 1,720 points if the market earnings yield based on the 10-year bond yield falls from 3.7% to 3.10%, or if earnings per share of listed companies rises from 95 baht per share to 105 baht per share, offsetting the lower P/E. US bond yields have risen quickly and sharply across both short and long maturities, driven by expectations of inflation risk from higher energy prices, boosting the chance that the Fed may raise rates or hold them longer than expected, plus an oversupply of US Treasuries. In Thailand, long-term bond yields rose significantly in line with the global bond mechanism from February to September, with the 10-year bond yield in particular climbing from 1.80% on 25 February to 2.17% on 31 August, then accelerating sharply over the following month to 2.40% on 29 September, comparable to a near one-time rate hike. Meanwhile, the short-term one-year bond yield remains at its previous level, as Thailand's policy rate stays unchanged in line with the direction of the Monetary Policy Committee.

Impact on assets 9

Cloud & Digital Infrastructure▲ · 2 stocks
Industrials▲ · 2 stocks
CH. Karnchang PCL
CK
▲ PositiveRegulationrelevance

CK's litigation risk has eased and 2027 state budget disbursement is proceeding normally, reducing legal/policy overhang.

Consumer Discretionary▲ · 1 stocks
Com7 PCL
COM7
▲ PositiveCapitalrelevance

COM7 is expected to post YoY profit growth in Q3 2026, accelerating in Q4 high season, driven by UFUND lending and ICARE insurance.

Energy Transition & Power Demand▲ · 1 stocks
Climate Adaptation & Water▲ · 1 stocks
Others▲ · 2 stocks
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