Kaohoon’s Top News on June 17, 2021

– Thai Prime Minister Prayut Chan-o-cha announced that Thailand will be fully open to visitors in 120 days or by mid-October, even if Thai citizens do not receive two doses of vaccination, in order to bolster the Thai economy, which has been hampered by the coronavirus outbreak since early last year. Phuket will be a test site for easing restrictions and accepting visitors under a sandbox model. The plan will be proposed to the Cabinet next week. Analysts suggest keeping an eye on 7 Reopening Plays. 

Meanwhile, from July 1, 2021, the SET50 Index will include four securities: IRPC, KCE, STA, and STGT.

– Saintmed (SMD) to begin trading today (June 17). Analysts anticipate that the share price will beat the 7.20 baht IPO price, citing SMD’s strong fundamentals and over two decades of experience exporting and importing equipment and medical supplies. Furthermore, the current share price is traded at 17.52x P/E. Analysts have given a target price at 10 baht per share, expecting net income for this year to exceed 100 million baht, up 13%.

– The financial sector was taken aback by the government’s recent guideline to lower interest rate ceilings in response to the country’s soaring household debt, despite the fact that interest rates are already fairly low. Currently, most financial institutions have set a car title loan interest rate about 15% vs. the ceiling of 24% and a nano finance interest rate about 28% vs. the ceiling of 33%.

KGI Securities forecast a limited impact on the non-banking sector, seeing the share price decline as an opportunity to buy, highlighted MTC, SAWAD, and KTC due to their high margins.

– TPC Power Holding (TPCH) seeks to list its subsidiary Siam Power on the Thai Stock Exchange within two years to raise funds for community power plant expansion. Additionally, the company expressed confidence in its ability to meet its 250MW capacity target by 2023.

– WHA Corporation (WHA) expects to see the sign of recovery in the operations in the second half of 2021 following Thailand’s mass vaccination drive. Also, the company maintains its target to sell 1,030 rai of land in Thailand this year and aims to develop and expand new industrial estates continuously. In addition, WHA plans to dispose of assets worth 5,500 million baht to WHART, with profit recognition beginning in 4Q21.

– Bangkok Dec-Con (BKD) approved the disposal of remaining 40% shares in Gold Shore in the amount not exceeding 550 million baht to Seven Utilities and Power (7UP). As a result, 7UP will hold 81% shares in Gold Shore.