Stock movements on the theme The “cannabis-marijuana” of companies listed on the Thai stock exchange continued after the legalization of marijuana was unlocked. And pushing for commercial Gradually enacting laws that allow it to be used in the production of beverages, food, dietary supplements, as well as cosmetics, and the “hemp-marijuana” theme has also attracted the attention of investors.
Recently, the research department of Asia Plus Securities (ASPS) has gathered information on the progress of licensing issues on the part of hemp-related businesses until June 23, divided into upstream – midstream – downstream businesses. that at present, in the position that the FDA has unlocked (that is, there is a notification of the Ministry of permission already issued), the details are as follows.
Upstream businesses are growers such as (STA and CPF). The FDA has unlocked hemp cultivation, including hemp seed imports. Recently, import permits were returned on May 64.
The extraction plant business (DOD, RBF, etc.) has been unlocked in the middle of the water. The FDA has unlocked the license to set up an extraction plant and produce oil + protein from hemp seeds. (latest in June 64)
parts that are not opened as for the license to extract and produce CBD extracts from hemp, initially expected to be opened within 3Q64, for example, DOD received a permit to import back during May 64, extraction plants and produce hemp oil months. Jun. Year 64 next, in the production of CBD shop, is waiting for the FDA to open for approval.
Downstream parts (those who use hemp ingredients in their products) such as MEGA RS OSP SAPPE ICHI, etc. Unlocked, FDA currently unlocks the use of hemp-derived elements, including oil, protein, and seed extract. In cosmetics (Jan. 21) and food (March 64) already.
But what is not unlocked is the use of CBD shop for food, which the FDA is drafting for use—expected to be completed within July 64. Therefore, it is estimated that there will be approved within 3Q21. Consequently, it is believed that there is a high chance that the product may be seen within 4Q21. As for the use of CBD extract in cosmetics, the research department is awaiting further clarification.
Based on the above points, ASPS Research recommends speculation on hemp-themed stocks. It may focus on stocks that have not yet announced positive issues. or short-term, there is little speculation, which can be divided into three groups:
- Issues pending approval of factories to produce commercial CBD extracts such as DOD RBF
- Issues pending the announcement of the permission to use CBD in food and beverages such as ICHI SAPPE CBG. Collect it from CBD shop.
- The short-term group has not seen a return to speculation, mainly cosmetic, skincare, and food supplement stocks such as KISS, BEAUTY, and JKN, all partners with DOD and have the opportunity to see the product launch in 4Q21.
But recommend speculation with caution, especially 1.) Stocks whose prices have risen above fundamentals, consider Trailing PE. We recommend avoiding stocks with high PEs (as shown in the table).
Considering the industry’s fundamentals, as previously presented, based in the US and Canada at the start of the new cannabis business. Most foreign companies will lose. The main problems are using the R&D investment budget and quality control. and efficiency, paid early marketing to believe that Thailand should be similar
Several companies not mentioned in the ASPS report, such as TU, which has aggressively partnered with DOD and are also wading into cannabis products to build on the existing business.
