Siam Wellness Group Public Company Limited

UOB Kay Hian (Thailand) expects SPA's normalized profit in the second half of 2026 to improve both quarter-on-quarter and year-on-year, driven by revenue recovery from the expansion of roughly 3-4 additional branches and same-store sales growth expected to reach high single digits year-on-year, particularly in the fourth quarter of 2026, which is the high season for foreign tourists, especially Chinese visitors whose numbers have continued to rise from the previous year. The research team also expects the net profit margin to improve quarter-on-quarter on the back of an approximately 5% increase in service prices, the first such adjustment in 2-3 years, combined with higher revenue that generates economies of scale and helps offset the pre-operation cost of the Zeaforest project in Pattaya, which is expected to come in at around 10 million baht. For the Zeaforest project, the company maintains its plan to open in early 2027, possibly starting with the hotel portion followed by the wellness section such as the spa and onsen. The project has a total value of 820 million baht, comprising 170 million baht in lease rights, 300 million baht in rent, and 350 million baht in construction costs, with approximately 58 rooms priced at 10,000 baht per night, a rate expected to already include various service packages at Zeaforest. Meanwhile, about 60% of main revenue will come from the wellness segment, which can serve roughly 500 people per day, and the ticket size is estimated to be higher than that of Let's Relax's current spa services at around 1,500 baht per person. For the 2027 outlook, the research team expects the spa business to trend better on the back of more foreign tourists, both Chinese and Middle Eastern, and the full-year recognition of the service price increase. For the ZeaForest project, the research team estimates revenue close to that of the company at around 200 million baht, but expects a small loss in the initial phase. The research team maintains its "Buy" recommendation with a target price of 3.60 baht, based on a 2027 P/E of 18x, equal to the two-year average P/E.

The Thailand Travel Thailand Plus 2026 programme has had its latest conditions approved by the Ministry of Finance and the Ministry of Tourism and Sports. Registration will open from 1 to 25 October 2026 through the Paotang application, with a total of 1,000,000 slots, and the programme will be submitted to the Cabinet for approval soon. For the accommodation subsidy, the government pays the actual cost of accommodation up to a maximum of 1,500 baht per night, capped at 5 nights per person, amounting to a maximum accommodation discount value of 7,500 baht. The electronic travel coupon is a co-payment model, with the government paying 50% and the public paying 50%. For travel to main cities, the government supports a coupon worth 1,500 baht per entitlement, and for travel to secondary cities, the government supports a coupon worth 2,000 baht per entitlement. If there is spending in a secondary city area at least once, the system will immediately adjust the limit up to 2,000 baht. The travel period for using the entitlement runs from 1 November 2026 to 28 February 2027, divided into Phase 1 from 1 November to 15 December 2026 and Phase 2 from 16 January to 28 February 2027, with the entitlement suspended during the New Year holiday from 16 December 2026 to 15 January 2027. Eligible persons must be Thai nationals aged 18 or over as of the registration date and must hold an original, unexpired national ID card. The stocks that benefit, ranked by proportion of domestic hotels from highest to lowest, are ERW, CENTEL, MINT and SHR. Restaurant stocks that benefit from the increased coupon, ranked by number of branches from highest to lowest, are M, ZEN, CENTEL and MAGURO. The spa business group is SPA.

The Ministry of Finance and the Ministry of Tourism have finalized the tourism stimulus measure "Thai Teaw Thai Plus," offering 1 million rights with a total budget of 3.5 billion baht. Registration will open from October 1-25, and rights can be used via the "Pao Tang" app starting November 1. The measure covers both primary and secondary cities, with usage allowed from November 1 to December 15, 2026, and suspended during the New Year holiday, resuming from January 15, 2027. It provides fixed-rate accommodation support, reimbursed at actual cost up to 1,500 baht per night, along with tourism coupons for restaurants, spas, massages, taxis, and other activities on a co-payment basis of 50%, capped at 1,500 baht per right for primary cities and 2,000 baht per right for secondary cities. Analysts from TTB Wealth Securities view this measure as positive for the tourism sector, with ERW benefiting the most, followed by CENTEL, MINT, AOT, BA, and SPA.

Kasikorn Securities stated that the Ministry of Tourism and Sports will discuss with the Ministry of Finance on September 8 to finalize the "Thai Teaw Thai Plus" project with a budget of 4 billion baht for 1 million rights, divided into accommodation discounts of up to 3,000 baht and a voucher of 1,000 baht per right, supporting the co-payment approach to increase cash flow in the system. If a conclusion is reached, it is expected to be proposed to the Cabinet next week and registration will open from October 1, 2026. This is seen as a positive sentiment for tourism, hotel, spa, and domestic service stocks such as ERW, CENTEL, AWC, and SPA, due to the potential recovery in demand and revenue during 4Q69.

A5 Design revealed it has secured design and construction projects worth over 100 million baht, even though it only officially launched early this year. The work includes design services for clients within the A5 group's projects and main construction work for resorts and restaurants of Siam Wellness Group Public Company Limited, or SPA, which is now more than 50% complete and has started to gradually recognize revenue. In addition, there is a new business pipeline of over 50 million baht currently under quotation, reflecting market demand for integrated design and construction services under the Human-Centric Design concept that emphasizes nature, well-being, and sustainability.