Kaohoon’s Top News on June 22, 2021

– Krungthai Card (KTC) and Aeon Thana Sinsap (Thailand) (AEONTS) are delighted that the Bank of Thailand has decided not to lower the interest rate ceiling on credit cards, but will instead focus on personal loans, auto title loans, nano and pico finance, all of which have an interest rate ceiling of higher than 20%. Analysts anticipate a modest impact on the non-banking sector (SAWAD and MTC), as the majority of these companies have already reduced their lending rates well below the ceiling.

– Mr. Pakorn Peetathawatchai, President of the Stock Exchange of Thailand (SET), claimed that there are no concerns even though the index has fallen to the 1,600-point resistance level, citing the index’s outlook remains stronger to that of other markets. Simultaneously, this indicates the strength of listed companies and a diversity of investment opportunities. Analysts believe yesterday’s (June 21) decline in the SET Index was a result of panic selling in response to Fed hints for higher interest rates in 2023, urging investors to closely follow tomorrow’s monetary policy committee (MPC) meeting (June 23). Analysts recommended stocks related to city reopenings.

– Right Tunnelling (RT) expects to acquire 50% of the construction project of Den Chai – Chiang Rai – Chiang Khong double-track railway tunnel worth 5 billion baht. Additionally, the company expects to obtain another 1.2 billion baht for this year’s auction, boosting the end-of-year backlog to 7 billion baht and reiterating the revenue target for this year of 20% growth over the previous year, with revenue forecast to exceed 3.5 billion baht the following year.

– Regional Container Lines (RCL) aims to acquire additional used and new vessels in order to prepare for increased demand for container ships, stating that the company plans to obtain six used boats in 3Q21 and have them ready for service in 4Q21, with the purpose of lowering the cost of leasing services and increasing profit.

– Sahakol Equipment (SQ) announced the acquisition of two new projects totaling 4,587 million baht in Hongsa, Lao PDR, bringing the company’s backlog to 27 billion baht and full-year revenue to 4 billion baht in 2021.

– Xspring Capital (XPG) entered into a Revenue Sharing Agreement with Sansiri where both parties will be equally responsible for the cost of the purchase of the Pool Assets and the working capital for operating and managing the Pool Assets, each party at the proportion of 50% of such cost and working capital. If there are profits from the management of the Pool  Assets, each party will receive an equal share in the proportion of 50% of the profits from the Pool Assets.