Myanmar Military Coup on Thai Stocks

The Myanmar military coup is not only affecting itself, but also hurting Thailand’s capitalists and their businesses whether in forms of direct investment or indirect investment in Myanmar.

 

Osotspa Public Company Limited (OSP), Carabao Group Public Company Limited (CBG) and Mega Lifesciences (MEGA), stocks in the consumer production sector, are expected to be firstly affected from the recent event due to border shutdown and airport closure. Despite having a demand, but can’t export products to Myanmar. However, analysts see only a short-term impact.

 

MEGA makes 45% of its income from Myanmar, meanwhile OSP and CBG make approx.10% and less than 5% of income from Thailand’s northwestern neighbor  respectively. 

 

Next, the industrial estate sector, Amata Corporation Public Company Limited (AMATA) submitted that the coup has significant effect on its operations causing 140-million-baht   Yangon Amata Smart & Eco City project to stop construction, delaying the change to book a revenue from this project indefinitely.  

 

Stocks in the electricity sector are also at risk to be hit by Myanmar political turbulence.  TTCL Public Company Limited (TTCL) has one project under the 2nd phase construction namely Ahlone power plant with a total capacity of 388MW. Even though TTCL has already signed the PPA, in the worst case, the PPA may be revoked because it was signed during NLD’s reign. 

 

Also the Minbu 220MW solar farm, jointly invested by Scan Inter Public Company Limited (SCN), East Coast Furnitech Public Company Limited (ECF) and Meta Corporation Public Company Limited (META), is likely to be in the same situation as TTCL.  

 

For PTT Exploration and Production Public Company Limited (PTTEP), despite the company could see insignificant impact, but analysts recommend to monitor the 600MW Gas to Power project with an investment value of 60,000 million baht, also in the worst case, PTTEP might lost a chance to penetrate the investment in Myanmar.