INVX: Thai Stocks Undervalued Excluding DELTA, Buy on Dip

MGR Online•Economy•2h ago

Reader Briefing

INVX asserts that Thai stocks are undervalued when DELTA's impact is removed, highlighting a Forward PER of 12x and advising investors to buy during dips.

•INVX (Innvest X) believes the Thai stock market (SET Index) is undervalued, particularly when excluding the influence of DELTA.
•The firm notes that the SET Index's Forward PER is around 16x, but excluding DELTA brings it down to an attractive 12x.
•INVX recommends a 'Buy on Dip' strategy, anticipating short-term market corrections in late May-June.
•Key investment themes identified include large-cap laggards, high-dividend stocks, and new normal/green energy companies.

Overview

•The Thai stock market (SET Index) has shown positive momentum post-election, surpassing 1,500 points.
•The overall SET Index (YTD) Forward PER has risen to approximately 16x, aligning with the 10-year average (2016-2025).
•The high PER is largely driven by DELTA, masking the true valuation of other stocks.
•Excluding DELTA, the Forward PER of the SET Index reduces to 12x, significantly below the 10-year average historical -1SD.
•INVX expects the market to be supported by strong energy sector profits due to rising oil prices and Thai government economic stimulus measures totaling 400 billion baht.
•INVX foresees a potential market correction in late May-June due to seasonal factors and MSCI rebalancing, presenting a 'Buy on Dip' opportunity.
•INVX identifies three key investment themes: Domestic & Laggard Value Plays, High Dividend stocks, and New Normal & Green Energy stocks.
•INVX advises investors not to be misled by the high overall index, as most Thai stocks are trading at levels comparable to the 1,200-point mark, making it an ideal time to accumulate quality stocks during market dips.

Full article content is available on the original source.

Read on MGR Online (Thai Version)View in Google Translate

Source: MGR Online (Original)

View Original Article

Key Quotes

INVX (บล.อินโนเวสท์ เอกซ์)

"Don't let the overall index figures fool you into thinking Thai stocks are expensive. If you look past DELTA, most Thai stocks are still at 1,200 points. The current period of short-term market dips is the best opportunity to select fundamentally sound stocks."

อย่าให้ตัวเลขดัชนีรวมหลอกตาว่าหุ้นไทยแพง เพราะถ้ามองทะลุม่าน DELTA เข้าไป หุ้นไทยส่วนใหญ่ยังอยู่ที่ 1,200 จุดเท่านั้น ช่วงที่ตลาดปรับฐานย่อตัวลงมาในระยะสั้นนี้ จึงเป็นโอกาสที่ดีที่สุดในการคัดเลือกหุ้นพื้นฐานดี

Key Entities

Organization

Innvest X(INVX)

Investment analyst firm providing market outlook and stock recommendations.

Innvest X Securities(บล.อินโนเวสท์ เอกซ์)

The Thai name for the investment analysis firm INVX.

DELTAℹ️

A specific stock whose performance significantly influences the overall SET Index valuation.

CPALLℹ️