CGSI keeps Overweight on tourism sector, picks THAI and ERW as top picks

Kaohoon··THCN·Read original
2▲3 ▼0Impact / 5
Summary · why it matters

CGSI, the securities firm CGS International (Thailand), said in an analysis that Thailand's foreign tourist arrivals in August 2026 came to about 2.5 million, down only 3% from the same period a year earlier, an improvement from a decline of roughly 5% in the first half of 2026, when the first quarter fell 2.4% and the second quarter fell 8.1%. The recovery was led by tourists from China and the Middle East. Chinese tourists rose 18% year on year in August 2026 to 482,000, the highest since February 2026, and accounted for 19% of total arrivals, up from 16% in August 2025, while Middle Eastern tourists increased 15% in August 2026. CGSI maintained an Overweight rating on Thailand's tourism sector, choosing THAI and ERW as its top picks. ERW has a high share of hotel business and its valuation is more attractive than peers, while THAI's profit is believed to have passed its bottom in the second quarter of 2026 and should begin recovering from the third quarter of 2026 on lower fuel costs and strong travel demand, with cabin factor at about 85% in July and August 2026. As for AOT, the increase in the departure passenger service charge, or PSC, effective since June 2026 will significantly support profit in 2027, but the share price has probably already reflected most of the benefit.

Impact on assets 3

Consumer Discretionary▲ · 1 stocks
The Erawan Group Public Company Limited
ERW
▲ PositiveDemandrelevance

CGSI picks ERW as a top pick on attractive valuation and high hotel exposure amid recovering foreign tourist arrivals led by China and the Middle East.

Aerospace & Aviation▲ · 1 stocks
Industrials▲ · 1 stocks
Airports Of Thailand PCL
AOT
▲ PositivePricingrelevance

Increase in departure passenger service charge (PSC) effective June 2026 will significantly support AOT's profit in 2027, though share price has already reflected most of the benefit.

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