Kaohoon’s Top News on July 22, 2021

– Global Power Synergy (GPSC) expects to start recognizing profits from India-based solar farms in 3Q21 and to achieve THB 1 billion in earnings the following year. The company intends to raise its capacity to 11,000MW by 2025, reiterating that no capital increase is required. The company anticipates concluding the purchase for the Taiwanese wind turbines in early 2022.

– Thailand’s Center for Covid-19 Situation Administration (CCSA) has ordered the closure of ten more locations, including exhibition halls and conference centers, as well as sports avenues and beauty salons. Meanwhile, the National Vaccine Institute has apologized for the delay and inadequacy of the Covid-19 vaccine rollout and promised to join the COVAX program next year.

– For the first six months of 2021, Bank of Ayudhya (BAY) outperformed Kasikornbank (KBANK) and Siam Commercial Bank (SCB), owing to significant gains from Ngern Tid Lor’s transaction. BAY had a net profit of THB 21 billion during the said period. Meanwhile, Bangkok Bank (BBL)’s 2Q21 earnings increased 60% as the Coverage Ratio increased to 160.7%. Thai banks recorded combined net income of THB 51 billion in 2Q21, up 69% from the previous quarter, and nearly THB 100 billion in the first six months.

– Kerry Express (Thailand) (KEX) expects to report excellent earnings in 2Q21 on the back of an increasing volume of delivered parcels of more than 2 million pieces per day in the midst of a severe Covid-19 epidemic. The company believes earnings should increase in 3Q and 4Q as the volume of delivered parcels continues to grow.  Most recently, KEX was named Thailand’s No. 1 Brand for logistics and delivery services for the fourth consecutive year. The analyst reiterates a “BUY” rating on KEX, with a target price of THB 56 on an estimated net profit of THB 317 million, up 49% QoQ.

– Minor International (MINT) has completed the sale of two hotel properties in Portugal: the Tivoli Marina Vilamoura and the Tivoli Carvoeiro. The combined selling price is EUR 148 million, or about THB 5,700 million, with a net gain of EUR 26 million, or approximately THB 1,000 million on the sale of assets.

– BANPU cancelled the insurance and offering of the Warrants BANPU-W6. The capital increase plan has been adjusted to conform with the SEC regulations. As a result, BANPU will issue and allocate only two warrants; BANPU-W4 and BANPU-W5. The company will propose this adjustment to the Extraordinary General Meeting of Shareholders to approve the capital increase and the allocation of New shares on August 9, 2021. The analyst foresees that the revisions will result in BANPU’s receipt of proceeds from capital increase sooner than the previous plan while total proceeds will be reduced by THB 2.1 billion.The analyst maintains “BUY”, but lower target price to THB 10.9/shpost-XR (from THB 11.0).