Kaohoon’s Top News on October 16, 2020

• KBANK issued subordinated bonds worth $500 million or approximately 15.5 billion baht with an interest rate of 5.275% per annum, offered to overseas institutional investors. The objective of this issuance is to qualify as additional tier 1 capital of KBANK for future business expansion which is in line with KBANK’s strategies. Analysts had positive views on KBANK’s issuance.

Meanwhile, Mr. Payong Srivanich, President of KTB, emphasized on the company’s capital funds without any needs for bonds issuance.

• BAM faced a huge selloff from investors after the Bank Of Thailand (BOT) revealed an idea to establish Asset Management Companies (AMC). Analysts stated that BOT should not intervene with the market mechanism and emphasized that private AMCs have strong stability.

Meanwhile, BAM is expected to form a joint venture with other banks to establish Asset Management Companies to manage over 1 trillion of NPL. 3Q20 profit is expected to increase by over 100% due to the recognition of DTA over 1.8 billion baht.

• TISCO’s profit in 3Q20 dropped 14.21% to 1.6 billion baht, but better than what analysts had expected of 1.4 billion baht. TISCO’s NPL lowered to 2.6%, while the coverage ratio jumped to 196% and BIS ratio reached 22.6%.
• Goldman Sachs switched recommendation on PTTGC from “Sell” to “Buy” with an upgraded target price of ฿50.00/share after oil prices edged higher which supported the company’s olefins business.
• Speculation on TMT buoyed its share price by 3.39%, while analysts expected 3Q20 profit at 150 million baht, an increase of 465% as the price of hot-rolled structural steel in China increased. The share price of MCS also jumped 7.63%.