Kaohoon’s Top News on May 18, 2021

Kasikornbank (KBANK) has expressed an interest in Citigroup (Citi) alongside peers such as Singapore’s DBS Group and United Overseas Bank, saying that the bank is weighing a 77 billion bid for Citi’s Thai retail business. According to analysts, KBANK is qualified to bid for this deal based on its financial position. They expect that this transaction would boost KBANK’s earnings as well bringing the overall loan portfolio’s growth by 3%. Hence, giving a target price on KBANK at ฿145.00/share.

 

The outlook for Thai Oil (TOP) sales this year is favorable, as demand for oil and petrochemicals will continue to improve in the second half of the year, in line with the global economic recovery. TOP is also prepared to expand its investment in the Olefins plant.

 

The share price of Thai Airways (THAI) hit the ceiling yesterday (May 17) in response to the last trading day before being put on “suspend” sign from today. The Treasury Department’s Director-General awaits a decision from the Ministry of Finance before ordering Dhanarak Asset Development to acquire 1% of THAI in an effort to re-establish the airline as a state-owned enterprise.

 

The Bank of Thailand stated that Thai banks have a strong outlook, with enough provisions and liquidity to cope with Covid-19. Additionally, the BOT designed to allow for normal dividend payments to the banking sector. Analysts recommended investing in KBANK, BBL, KTB and TTB.  

 

Sermsang Power (SSP) expected to commence COD of Japanese solar farms with an installed capacity of 20 MW in 3Q2021, followed by a 48-MW wind farm in Vietnam in 4Q2021, pushing the company’s total capacity to 200 MW. SSP announced a net profit of 183.1 million baht for the first quarter of 2021, a rise of 9.50%.