ASPS Expects Fund Inflow to Drive SET to 1,626pts in 2021, Suggesting Buy PTT-KBANK-GULF

Asia Plus Securities (ASPS) expects fund inflow to support the SET Index in 2021 to 1,626 points, while forecasting the net profit for listed companies in the market will grow 38%, also recommending PTT, KBANK, ADVANC and GULF as big-cap stocks with strong fundamentals.

 

The 2021 SET Index target is 1,550 pts, based on a market earnings yield gap of 3.70% and the interest rate of 0.5% or 23.81x P/E (conservative assumption amid fund inflow), however, if based on a market earnings yield gap of 3.70%, the Index could reach to 1,626 points.

 

Thai stock market next year is expected to receive a support from foreign fund inflows, especially from a foreign direct investment (FDI) and the U.S. blue wave that will be pushed forward policies e.g. corporate tax hike from 21% to 28%, minimum wage hike, infrastructure investment budget, and clean energy policies.

 

Net profit for listed companies in 2021 projection is 719 billion baht or accounting to B65.04 (38% YoY growth). Meanwhile, estimating Thailand’s 2021 GDP to grow 4.1% from last year as economic activities are gradually recovering. 

 

For investment strategy, the market in January is still on an upside trend, recommending PTT, KBANK, ADVANC and GULF as big-cap stocks with strong fundamentals and will gain support from fund inflow. For high dividend yield play, recommending AP andDCC. On the other hand, ASPS suggests to carefully invest in MAJOR and DELTA as their price already surpassed the fundamental factors.