Kaohoon’s Top News on June 24, 2021

– Ratch Group’s (RATCH) Board of Directors approved an increase in the company’s registered capital by issuing new ordinary shares totaling 769 million shares to existing shareholders. The offering price per share is projected to be 39 baht. The estimated 30 billion baht funding will be used to invest in coal-fired thermal power plants in Indonesia with a combined capacity of 2,045 MW, of which RATCH owns 45.1%. Analysts anticipate a short-term impact on RATCH’s share price, but believe the transaction will benefit the company in the long run. The plant is estimated to generate a total of 3,723 million baht annually.

– The Bank of Thailand unanimously voted on Wednesday (June 23) to maintain the policy rate at 0.50%, as the third wave of the Covid-19 pandemic has delayed Thailand’s economic recovery. The BOT also lowered its GDP growth forecast for 2021 to 1.8% from 3% and for 2022 to 3.9% from 4.7%, citing low foreign tourist arrivals. Additionally, BOT urged the government to speed up the procurement of vaccines.

– Analysts recommend investors to monitor Thailand’s May export data today (June 24), as it is expected to boost sentiment for stocks in the electronic, auto parts, rubber gloves, and animal food sectors, including CPF, TFG, HANA, KCE, STGT, SAPPE, IVL, XO, and NER. Furthermore, analysts noticed that every 1 baht depreciates, profits will expand by 1-3%. The baht recently fell to 31.82 baht to the dollar, its lowest level in 13 months.  

– The Chanvirakul group’s STP&I (STPI) has approved the establishment of a subsidiary to support the hemp business, causing the share price to close 2.68% higher yesterday (June 23).

– Proen Corp (PROEN) is prepared to celebrate for an outstanding ICT performance in the second half of the year, projecting a 20% revenue and profit increase in 2021. The company plans to acquire works worth between 200 and 500 million baht from PEA-MEA. Meanwhile, K. W. Metal Work (KWM) raised its revenue growth target for 2021 by 40%, citing increased demand for disc harrows and a positive outlook for the company’s new cannabis extraction business over the next three years.