ASPS Expects PETRO Sector to Grow 668% in 2021, Raising PTT-GULF-BBL as Top Pick

Asia Plus Securities (ASPS) saw petrochemicals & chemicals (PETRO) as the sector with the most growth potential in 2021, followed by construction services (CONS). The sector’s earnings are estimated to skyrocket 668.3% this year. ASPS also recommended 10 stocks with 2021 EPS growth over 32% e.g. PTT, GULF and BBL.

 

ASPS stated that the SET is currently in a market correction after challenging the 1,550 resistance level and will later enjoy the upside. Following a list of sectors with good growth potential in 2021 compiled by ASPS, PETRO is expected to grow the most this year as high as 668.3% YoY. 

 

Meanwhile PTT Public Company Limited (PTT), Gulf Energy Development Public Company Limited (GULF) and Bangkok Bank Public Company Limited (BBL) are projected to have EPS growth over 32%, outperforming market EPS growth.

 

As of 2020, listed companies (excluding THAI) in the SET reported a combined net profit of 603 billion baht, beating the market expectation of 580 billion baht. While 2021 market earnings are estimated to increase 32% to 796 billion baht (based on 2021 crude oil price assumption of US$50).

 

ASPS said that this would have positive sentiment on the SET Index. Statistically, in the years with market earnings growth over 30%, SET Index rallied 20% on average.

 

In addition, ASPS has recommended “BUY” on stocks upside over 10% with 2021 EPS growth over 32% and Beta over 1 as follows: 1. CKP (TP: ฿6.15/Upside 42.3%), 2. BTS (TP: ฿9.35/Upside 42.3%), 3. CK (TP: ฿22.00/Upside 32.5%).

 

4. SPALI (TP: ฿25.50/Upside 23.2%), 5. VGI (TP: ฿8.50/Upside 22.3%), 6. BBL (TP: ฿154/Upside 21.3%), 7. BEM (TP: ฿10.20/Upside 20%), 8. GULF (TP: ฿35.8/Upside 15.8%), 9. SEAFCO (TP: ฿5.30/Upside 15.7%) and 10. PTT (TP: ฿48.50/Upside 15.5%).