Daily Strategy for Investors on December 26, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on December 26, 2019, pointing out some of the must-know events in the equity market as follows:

 

Investment Ideas:

1) Stock markets: The US and European commodity markets are closed for Christmas.

2) There were explanations coming out for land tax policy in a more relaxed manner. It is a factor that helps relieve pressure on real estate stocks.

3) Thai stock market today still has an opportunity to pick up for window dressing, LTF and RMF.

4) Outstanding stocks are still banks, finance and power plants.

5) Today’s index range is expected to be 1,565 -1,585 points. Recommended stocks today are BGRIM, GPSC, BBL, KBANK and KTC.

 

Stock & Comment
BGRIM – TP ฿59.00/share
GPSC – TP ฿97.00/share
BBL – TP ฿223.00/share
KBANK – TP ฿182.00/share
KTC – TP ฿53.00/share

 

Pick of the day: BGRIM (BUY; AWS TP Bt59.00)

BGRIM’s production capacity at the end of 2019 is at 2,896 MW from a total of 46 plants and it will increase to 2,951 MW from a total of 49 plants. There will be an additional 16 MW from Bo Thong 1&2 power plants and 39 MW from Solar Farm in Cambodia. In 2021 and 2022, the production capacity will increase to 3,191 MW and 3,372 MW respectively, mainly from the development of five new replacement power plants that have expired.

AWS’ target price is Bt59.00 based on DCF method. AWS has not yet included the 3,000 MW LNG electricity power plants which have already entered into the contract with Petrovietnam Power since early November 2019. This 3,000 MW is regarded as the Upside Potential of BGRIM.

BGRIM remains very strong in a full uptrend from the occurrence of Daily, Weekly, and Monthly Buy Signal. Once consider BGRIM, a significant target to make a new target of Bt64.75. BGRIM has a short-term stop-loss points at Bt50.25 (Resistance: 53.00, 53.50, 54.25; Support: 52.25, 51.75, 51.00).