COMM

Despite the flooding caused by tropical storm Dianmu is beginning to subside in many provinces, the situation should still be closely monitored, especially the restoration of homes damaged by the disaster. DBS Vickers Securities (DBSVS) expects the widespread flooding in Thailand to have a limited impact because the situation is not as severe as it was in 2011. However, demand for construction materials is expected to be high in the fourth quarter of this year due to increased demand for housing restoration, which would benefit Commerce stocks (COMM). DBSVS believes that same-store growth (SSSG) has bottomed out in 3Q21 and will recover strongly from 4Q21 onwards as the government relaxes some lockdown measures and the country gradually reopens since the COVID-19 outbreak has subsided and a high season approaches. As a result, DBSVS maintains an Overweight rating in Commerce stocks (COMM), with two of its Top Picks being COM7, that is expected to gain from new IT product launches like the iPhone 13, and HMPRO, which is supposed to benefit from the need to repair houses once the flooding has faded away.