Kaohoon’s Top News on June 28, 2021

– Gulf Energy Development (GULF)’s CEO Sarath Ratanavadi will become a strategic partner in the merger of US-based Local Bounti Corp. and Leo Holdings III Corp. in a transaction valued at US$1.1 billion or 35,000 million baht, with the combined business aiming to penetrate the global food and agriculture market and eventually be listed on the New York Stock Exchange. GULF’s market capitalisation is expected to be between 100,000 and 120,000 million baht in 2025, according to analysts.

– PTT Exploration and Production (PTTEP) is desperate to enter the Erawan gas field to install production infrastructure due to a dispute between the Department of Mineral Fuels (DMF) and Chevron crop, citing production continuity concerns. As a result, PTTEP is compelled to import additional natural gas from another field instantly in order to meet PSC’s 2022 contract requirement.

– Bangkok has declared a partial shutdown beginning June 28. Analysts anticipate a sell-off in property and restaurant sectors, setting a resistance level at 1,570 points and recommending investors to shift their focus to petrochemical, hospital, and insurance stocks. The Federation of Thai Capital Market Organizations forecasts that the SET Index will reach 1,650 points by year’s end and that listed companies’ profits will increase 56%.

– Central Pattana (CPN) is in the process of studying the additional information in the acquisition of Siam Future Development (SF) from Major Cineplex Group (MAJOR). Analysts see a positive sentiment toward MAJOR if the transaction is done and estimate to gain an extra profit of 4,400 million baht.    

– Tmbthanachart Bank (TTB) is expected to pay an interim dividend, with analysts estimating a net profit of 5,000 million baht. Additionally, analysts increased their target price for TTB to 1.51 baht per share in expectation of a strong outlook in 2022.

– Ratch Group (RATCH) announced a capital increase with the goal of investing in the Republic of Indonesia’s Paiton power plant project. According to the shareholder equity ratio, the Electricity Generating Authority of Thailand (EGAT) is expected to raise 13 billion baht in RATCH capital.