The Thai Edge: Winning Strategies for SGX Listed Top 3 Thai Stocks Now

Unlocking Growth Potential and Maximizing Returns with Singapore Depository Receipts (SDRs)

Have you ever wondered how you can take a position in some of the Top Thailand companies listed on the SET, without the hassle and additional cost of buying the stocks directly there?

We can take a position in some of the Top Thailand companies like any other stocks listed on the Singapore Exchange.

We can buy what is called Singapore Depository Receipts, in short, SDRs.

SDRs are instruments representing beneficial interest in an underlying security listed on an overseas exchange and are issued for trading on the securities market of the Singapore Exchange by an intermediary, SDR Issuer, on an unsponsored basis.

It will enable SGX investors to expand investment horizons to overseas listed companies in a simple and cost-efficient manner.

So, with the launch of 3 Thai Underlying SDR as at end May 2023, traders and investors in Singapore can now invest in such Thai companies just like any Singapore stocks listed on the SGX with the same settlement procedures and SGD traded currency.

Beginning April 2024, 5 new Thai stocks have been added so there are a total of 8 Thailand stocks that you can take a position now through SDRs.

I will be analyzing the charts of the top 3 underlying Thailand stocks out of these 8 stocks in my opinion one can take a position on as of today.

Will touch on how one can buy the SDRs traded on the SGX easily and the potential target price based on current price levels.

The 8 underlying Thai stocks listed in the SET and their codes are:

1) Gulf Energy (GULF.BK) — One of Thailand’s Largest Gas-fired Power and Renewable Energy Producer

GULF.BK have seen signs of a rapid reversal in trend over the past few weeks on merger news. Gulf and Intouch Holdings which controls the country's top mobile phone operator AIS, announced on 16 July 2024 they would merge to create a major digital and energy infrastructure player in Southeast Asia.

The deal, expected to close by second quarter of 2025, will result in the dissolution of Intouch and Gulf and the formation of a new public limited company, with a registered capital of 14.94 billion baht ($414.77 million).

It has then broken a key resistance at 46 (S$1.70) that we have been trading below since September last year. This can be very meaningful and can show that buyers are prepared to take it to the next phase up.

With the 20-day moving average green line also sloping up firmly in the last month, the short-term trend has also turned up aggressively.

A potential rebound can occur all the way to 50 (S$1.85) near term target where it has retraced lower once last year.

One can consider entry above 46 (S$1.70) on any slight dips near it if this new support holds. Would be good to have a stop loss level at around 44 (S$1.62) to get out in case we fail to hold above 46 (S$1.70) support.

So how does one take a position in Gulf Energy from the SDR traded on the SGX?

Well, you can take a position in this SDR, which is named Gulf TH SDR (TGED), currently priced at S$1.78.

For an entry near 46 (S$1.70) to ride to 50 (S$1.85), we are looking at about 8% potential upside as per targets.

2) Advanced Info Service (ADVANC.BK) — Largest Telco in Thailand

ADVANC has broken 2 very critical resistance in the past month that can set it up for more upside and the beginning of a much firmer uptrend. The first resistance is at 212 (S$0.78) where it has traded below for the past 4 months.

The next resistance broken is at 225 (S$0.83) which is very key as we have been trading below since 2022. Any firm break above this key level can finally see it move out to a higher phase.

The 20-day moving average green line has started to point up over the past month, which shows that short term trend has turned positive too. With prices holding above 225 (S$0.83) now, the uptrend looks intact with potential target towards 250 (S$0.92).

So how does one take a position in ADVANC from the SDR traded on the SGX?

Well, you can take a position in this SDR, which is named Advanced Info Service (TADD) currently priced at S$0.88. On any dips towards the new higher support at 225 (S$0.83), one can consider an entry for a rebound towards 250 (S$0.92).

Would be good to have a stop loss level below 220 (S$0.81) to get out in case the new support fails to hold. Note that for ADVANC, there is a ratio of 10 SDR to 1 underlying stock, so the conversion from Thai bath to SGD will be to times 0.037 then divided by 10.

3) Delta Electronics (DELTA.BK) — Largest Company Listed on SET, Beneficiary of Structural Trends of EV Adoption and Data Centers

DELTA.BK has finally broken above the 95 (S$3.52) resistance over the past week. This was a key level that we have traded below since September 2023 so any move above can be meaningful and can mean strength.

The 20-day moving average green line has continued to slope up further as the short-term trend gains strength. 95 (S$3.52) would now be a new support where some bargain hunting has appeared and where one can consider locking in some positions to ride the reversal.

The upside target can be towards 120 (S$4.44) where we saw some heavy selling in Jun - July last year.

With price holding above 95 (S$3.52), may gradually see the longer-term trend turn up with the 100-day moving average red line just about to cross back above the 200-day moving average blue line.

So how does one take a position in Delta Electronics from the SDR traded on the SGX?

Well, you can take a position in this SDR, which is named Delta TH SDR (TDED) currently priced at S$3.80.

One can consider entry above 95 (S$3.52) on any slight dips near it for a trade higher. We are looking at a 24% potential upside as per targets to 120 (S$4.44).

Would be good to have a stop loss level at around 90 (S$3.33) to get out in case we fail to hold above the support.

Footnote: Currency conversion used from THB to SGD is 0.037 for this article.

About the Author - Joey Choy

Joey is Singapore’s renowned mentor on how to make an income by trading the stock market, an author and one of the most-watched, quoted and followed stock trading trainers in Singapore. Over the years, he has conducted numerous full house seminars, enriching thousands to trade more profitably. 

Joey’s come back story from a S$740k debt has been featured in the Business Times and inspired thousands in Singapore. In less than 3 years, he is highly regarded as one of the Top Tier Remisiers (Stock Brokers) and Traders, bagging numerous yearly awards like Top Trading Representative and Top CFD Achiever every year from 2014 to 2023 in Phillip Securities.

More about Joey here

Hope you have found the above content useful 😃 

If you have yet to attend my FREE webinar on how I select HIGH PROBABILITY WINNING STOCKS, you can check it out here!

Look forward to see you on the inside!

- Joey

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