Chin-a new look: CGS-CIMB now CGS International after takeover

Following the complete acquisition by China Galaxy Securities in December 2023, CGS-CIMB Securities (Thailand) has rebranded to CGS International Securities (Thailand) (CGSI). The move solidifies China Galaxy Securities’ regional presence.

Backed by the Chinese government, China Galaxy Securities is the second-largest securities company in China, boasting over 500 branches nationwide.

The rebranding is a direct result of China Galaxy Securities’ full ownership, states CGSI’s Chief Executive, Patcharanon Cheevakrianggrai. It is noteworthy that CGSI is the sole Thai brokerage under complete Chinese government ownership.

The Malaysia-based CIMB Group initiated the ownership shift by selling 50% of its shares in CGS-CIMB Securities to China Galaxy Securities in 2018. The Chinese broker then went on to acquire an additional 25% share in December 2022, and the remaining 25% in December 2023, reported Bangkok Post.

Patcharanon reassures that these internal structural changes will not affect the brokerage’s operations or client rights. All transactions initiated prior to the change will proceed under CGSI.

The rebranding promises to bolster relationships between China and Southeast Asia, as CGSI will have enhanced access to regional clients and investment opportunities, Patcharanon forecasts.

Turning to investment directions, CGSI Research maintains an optimistic view on hospital stocks listed on the Thai bourse. CGSI Research’s Head of Thailand research, Kasem Prunratanamala, anticipates foreign patients to drive profit growth for healthcare services this year, as more seek treatment in Thailand, thereby boosting hospitals’ profit margins.

CGSI Research predicts a 10% revenue growth this year and 8% in 2025 for hospital groups. With foreign capital inflows amounting to 10 billion baht (US$278 million) in 2023 and 2 billion baht (US$55.69 million) year-to-date, hospital groups have been on the receiving end of significant investment.

Last year, Bangkok Dusit Medical Services saw the largest foreign investment inflows. This year, however, Bumrungrad Hospital tops the list, Kasem added.