CGSI upgrades retail stocks to Overweight after strongest demand recovery in three years

Thunhoon··TH·Read original
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Summary · why it matters

CGS International (Thailand), or CGSI, has raised its investment weighting for Thailand's retail sector from Neutral to Overweight, and changed its recommendations on home improvement stocks from Sell to Buy, namely DOHOME, GLOBAL and HMPRO, after finding the clearest signs of demand recovery in three years. Data on residential low-rise construction permits has returned to growth, with permitted construction area rising 10.6% year on year in the first quarter of 2026 after declining for 11 consecutive quarters, and rising another 7.7% year on year in the second quarter of 2026, suggesting home improvement product sales should recover in the fourth quarter of 2026 and in 2027. The research team said DOHOME is the most attractive first choice, because construction materials account for nearly 50% of its first-half 2026 sales, and about 35% comes from the northeastern region, where applications for residential low-rise construction permits rose roughly 20% year on year in both the first and second quarters of 2026, according to data from the Real Estate Information Center, or REIC. GLOBAL is the second choice, while HMPRO will gradually recover along with consumption, supported by a dividend yield of 5.5% in 2027. CGSI raised its combined net profit forecasts for the three companies by 1.0% to 3.6% for 2026 to 2028, after lifting sales and margin assumptions for some companies and lowering financial costs.

Impact on assets 3

Consumer Discretionary▲ · 3 stocks
Dohome Public Company Limited
DOHOME
▲ PositiveCapitalrelevance

CGSI upgraded DOHOME to Buy and named it top pick, raising its net profit forecast on stronger home-improvement demand.

Off-coverage companies 1

CGS International Securities (Thailand) Co., Ltd.Private± Mixed
relevance

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