CGSI Sees Potential SET Index Consolidation, Highlights BDMS and KKP as Top Picks

CGS International Securities (Thailand) (CGSI) has provided its outlook for the Thai stock market, assessing that the SET Index is likely to move within a range of 1,550 to 1,585 points on Thursday. The brokerage noted that the market may experience profit-taking pressure following the recent strong gains. CGSI observed that global investment sentiment remains cautious. The S&P 500 and Nasdaq indices in the United States recorded only modest gains, as investors reduced their buying activity in AI stocks after a sharp rally. Additionally, the market is closely monitoring developments in the Middle East negotiations, currently remaining uncertain. In terms of investment strategy, CGSI recommends focusing on laggard defensive stocks—those that have underperformed the broader market and possess defensive characteristics that help mitigate risk. The brokerage has selected Bangkok Dusit Medical Services ( BDMS ) and Kiatnakin Phatra Bank ( KKP ) as its preferred picks. Regarding BDMS, CGSI believes that investor concerns over the potential impact from the current conflict between the U.S. and Iran may be overstated, as patients from the Middle East contribute only around 4% of the company’s projected revenue in 2025. Core net profit for 1Q26 is forecast to decline by 10% year-on-year and 3% quarter-on-quarter. For KKP, the company reported a first-quarter net profit of THB 1.96 billion, representing an increase of 84% from the same period last year and a 10.4% rise from the previous quarter. This result exceeded CGSI’ estimate by approximately 10%. Consequently, the brokerage has revised upward its earnings per share forecasts for 2026-2028 by 7.9–16.2% to reflect stronger loan growth, an improving net interest margin, and a lower cost-to-income ratio.