CGSI Upgrades Thai Retail to Overweight, Flips DOHOME, GLOBAL and HMPRO from Sell to Buy

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Summary · why it matters

CGSI, or CGS International Securities (Thailand), has raised its investment weighting for the Thai retail sector from Neutral to Overweight, while flipping its recommendations on home improvement stocks DOHOME, GLOBAL and HMPRO from Sell to Buy, after finding the clearest signs of demand recovery in three years. Construction area permitted rose 10.6% year on year in the first quarter of 2026, following 11 consecutive quarters of decline, and increased 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 pick because it should benefit first, as construction materials account for nearly 50% of its first-half 2026 sales, with about 35% coming from the northeastern region, where applications for permits to build low-rise housing rose roughly 20% year on year in both the first and second quarters of 2026. GLOBAL is the second pick because its share of construction material sales is lower at about 35%, while HMPRO will recover gradually in line with consumption and is 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

Off-coverage companies 1

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