The share price of Bangkok Commercial Asset Management Public Company Limited (BAM) rose as much as ฿1.20/share or 5.2% to trade at ฿24.00/share.
As of 11:52 local time in Bangkok, BAM was traded at ฿23.60/share, increased ฿0.80/share or 3.51% with a trading value of 2,861 million baht.
Today is the first trading day after the expiration of BAM’s greenshoe options, and the share performs outstandingly despite the plummet in SET Index due to concerns of the U.S.-China trade deal.
The analyst has stated that the strength of BAM is the ability to acquire non-performing assets at a lower price and being able to sell at a higher price, resulting in a net profit margin at 69%. Currently, BAM has assets worth 700 billion baht in its portfolio waiting to be sold. Looking ahead, BAM still has more room to grow.
BAM’s 2019 profit is forecasted at 12,675 million baht, increasing 144% from the same period of last year mainly due to an extraordinary item from Deferred Income Tax Assets (DTA) around 5,000 million baht. The growth would return to normal afterward at a rate of 5% during 2020-2021.
Due to this reason, BAM has been categorized as an interesting Growth Stock in the market.
More importantly, the most outstanding point of BAM is its considerably low P/E at 10.68x while other stocks in the sector such as CHAYO has P/E at 29.30x and JMT at 29.51x.