Dahua Jixian: The residential real estate industry in Thailand is facing headwinds in terms of supply costs and demand

Analysts at Dahua Jixian stated in a research report that the residential real estate industry in Thailand may be facing cost pressures on the supply side and headwinds on the demand side. Analysts at Dahua Jixian stated that the cost pressure on the supply side is being driven by the sharp increase in construction material costs, which is expected to compress gross margins on construction projects starting from the second quarter. As for the headwinds on the demand side, the rejection rate for mortgage applications remains high, forcing developers to offer aggressive price promotions to clear finished goods inventory. The brokerage firm maintains a neutral rating on this sector. They are bullish on AP and have given it a buy rating with a target price of 8.50 Thai Baht. The stock rose by 0.7% to 7.20 Thai Baht.