CGSI upgrades Thai construction retail sector, lifts DOHOME, GLOBAL and HMPRO from Sell to Buy

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Summary · why it matters

CGSI, or CGS International (Thailand), has raised its investment weighting for Thailand's construction retail sector from Neutral to Overweight and upgraded its recommendations on DOHOME, GLOBAL and HMPRO from Sell to Buy, after seeing 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 11 consecutive quarters of decline, and up 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 saw same-store sales rise in July and August and expects this channel to keep posting high single-digit same-store sales growth in September. DOHOME is the most attractive first pick because construction materials account for nearly 50% of its first-half 2026 sales, with about 35% coming 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. GLOBAL is the second pick, while HMPRO will recover gradually along with consumption, supported by a dividend yield of 5.5% in 2027. CGSI has raised its combined net profit forecasts for the three companies by 1.0% to 3.6% for 2026 to 2028.

Impact on assets 3

Consumer Discretionary▲ · 3 stocks

Off-coverage companies 1

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