Most Thai listed companies will experience limited impact from the Central Bank of Myanmar's order to temporarily prohibit companies and retail borrowers from repaying foreign loans to sustain the country's foreign exchange reserves as most Thai companies operating in Myanmar do not have debts in foreign currency.
However, analysts at Asia Plus Securities (ASPS) said hospital stocks will be affected in the short term as there may be fewer patients from Myanmar coming to Thailand for treatment in the second half.
Prices of hospital stocks such as Bumrungrad Hospital (BH) and Bangkok Dusit Medical Services (BDMS) dropped yesterday.
However, analysts have said the impact will only be short term because international travel is not prohibited. Both BH's and BDMS's proportion of income from patients from Myanmar are also not very high.
ASPS expects BH and BDMS to record earnings growth in the third quarter as the cancellation of Thailand Pass would encourage more foreign patients to seek treatment here. More patients from Saudi Arabia are also expected to come thanks to the restoration of diplomatic ties.
ASPS said this is a good time to buy both BH and BDMS as the prices will likely recover soon.
KTBST Securities also recommends buying Thai stocks whose prices have dropped due to the news, including Mega Lifesciences (MEGA) shares with a target price of 67 baht as the brokerage expects the company's profit to hit a new record from the second quarter. MEGA is benefiting from the baht's depreciation and heightened health concerns among consumers.
MEGA's revenue from operations in Myanmar accounts for 37% of total revenue. Some 65% of revenue in Myanmar is from pharmaceutical products which are essential consumer products. MEGA receives income in kyat but the company has set the selling price in US dollars.
The company does not have foreign loans.
