Finance Sector Rebounds after a Sharp Fall, Analyst Upgrades THANI’s TP to ฿4.02

SAWAD, MTC, KTC and AMANAH rebounded after stocks in the finance sector fell below the threshold. The analyst raised THANI after the analytic meeting, revised up 2020-2022E net profit by 16-29% yearly, while the negativity in 2Q20 has bottomed out and would rebound in 2H20 as a “fast-growth stock”, upgrading a target price to ฿4.02/share.

 

As of August 26, 2020, the finance sector were closed higher; Srisawad Corporation Public Company Limited (SAWAD) jumped ฿4.25/share or 9.77% to ฿47.45/share with a trading value of 1,645.4 million baht, Muangthai Capital Public Company Limited (MTC) increased ฿1.75/share or 3.59% to ฿50.50/share with a trading value of 950.7 million baht, Krungthai Card Public Company Limited (KTC) increased ฿0.50/share or 1.64% to ฿31.00/share with a trading value of 192.1 million baht and Amanah Leasing Public Company Limited (AMANAH) rose ฿0.12/share or 4.84% to ฿2.60/share with a trading value of 42.7 million baht.

 

Analyst of Capital Nomura Securities stated that in Thai stock market recently, investors are likely interested in laggard stocks, such as the finance sector which has fallen below the threshold. Capital Nomura believed an increment of finance stocks yesterday was due to speculation. Meanwhile, having a positive view on THANI after the analytic meeting has revised up 2020-2022E net profit by 16-29% yearly as the provision for doubtful debt and loan were better than expected. As the negativity in 2Q20 has bottomed out, Capital Nomura upgraded a target price from ฿3.92/share to ฿4.02/share.

 

LH Securities has recommended to accumulate on THANI, giving a target price at ฿3.60/share with an upside of 14.6%. LH saw THANI as a “fast-growth stock” with high profit potential. Meanwhile, KTB Securities (Thailand) has given “BUY” recommendation with a target price of ฿4.40/share.