Summary · why it matters
The Geo-Informatics and Space Technology Development Agency, or GISTDA, has reported on nationwide water conditions following continuous heavy rain. Data from satellite and geo-informatics technology shows many areas at high risk of flooding, particularly the central region and the lower north, where the high-risk red zone has expanded widely, covering Nakhon Sawan, Phichit, Phetchabun, Lopburi, Saraburi and Suphan Buri, extending to Pathum Thani, Nonthaburi and parts of Bangkok. In the lower northeast, accumulated water masses are found along river basins, with the high-risk red zone densely concentrated in Surin, Si Sa Ket, Buri Ram and Roi Et. Koraphat Vorachet, Senior Executive Vice President and Head of Research at Krungsri Securities, or KSS, assesses that the flood situation may pressure consumer purchasing power in the short term, but once the post-flood recovery phase begins, demand for home repair and renovation products tends to rise. The retail groups worth watching include Home Product Center, or HMPRO, Siam Global House, or GLOBAL, DoHome, or DOHOME, and Mr. D.I.Y. Holding (Thailand), or MRDIYT, which operates a retail business in home decoration and lifestyle products covering hardware, tools, household appliances, home decor and electrical goods. Overall, the impact on the Thai stock market will depend on the scale and duration of the effect on purchasing power, as well as the speed of the transition into the recovery phase. General merchandise retailers may face short-term pressure, while HMPRO, GLOBAL, DOHOME and MRDIYT are retail stocks with businesses tied to home products, repairs and residential renovation, whose recovery-phase effects can be tracked on an ongoing basis.
Dohome Public Company Limited
Siam Global House Public Company Limited
Home Product Center Public Company Limited
MR. D.I.Y. Holding (Thailand) Public Company Limited