Kaohoon’s Top News on June 8, 2021

Kasikornbank (KBANK) will increase its free float by allowing NVDR to own above 30-35%, up from 25% as of  currently, in anticipation of re-inclusion in the MSCI Global Standard Indexes. Analysts spotted an opportunity to accumulate in KBANK due to its low share price and low P/BV ratio of 0.6x. Apart from that, KBANK delivered an amazing 2Q21 operating result as the economy recovered, boosting the company’s net income by 23% to 36 billion baht for the year. Analysts set the target price for KBANK at 175 baht per share. Today, KBANK will resume trading in NVDR (June 8).

 

Gen. Prayut signed an official purchase order for a combined 25 million doses of vaccine produced by US-based Johnson & Johnson and Pfizer-BioNTech, as well as an additional 8 million Sinovac vaccine doses. Furthermore, the government asserted that the supply of Covid vaccine will meet the target of 100 million doses. The Federation of Thai Capital Market Organization expressed confidence that the SET Index would exceed 1,650 points as of the end of the year, citing the considerable impact of the vaccination distribution plan on the Thai market.

 

M.C.S. Steel (MCS) announced three new acquisitions totaling 51,600 tonnes. Analysts recommended a “BUY” rating on MCS with a target price of 18.50 baht per share, citing the possibility that new project acquisitions will ramp up the company’s backlog to 100,000 tonnes, which will be recognized until 2023. MCS is also expected to announce the 2-3 new future projects that are currently in negotiations.  Analysts forecast the MCS’s earnings outlook for 2021 to be exceptional, with a profit of 1.031 billion baht, an increase of 8%.

 

North East Rubber (NER) raised its income projection for 2021 to exceed 24,500 million baht, with a 440,000-tonne sales volume, in response to the growing demand and a higher rubber price. Analysts have given NER a “BUY” rating with a revised target price of 9.50 baht per share following an upward revision to the company’s 2021 net profit outlook.

 

Electricity Generating (EGCO) has completed the acquisition of a 28% stake in the 972 MW Linden Cogen Facility in the United States. This was consistent with the company’s aim of increasing overseas investment. EGCO anticipated concealing an additional 2-3 projects in order to boost the company’s overall capacity to approximately 1,000 MW. Meanwhile, BANPU has invested 2,330 million baht in the acquisition of two solar farms in Australia, with a combined installed capacity of 166.8 MW.