RATCH Snaps a 4-Day Losing Streak as CNS Views Capital Increase to Benefit in a Long Run
RATCH snapped a 4-day losing streak with a slight gain this morning. Capital Nomura expected the capital increase to benefit in long term.
The share price of Ratch Group Public Company Limited (RATCH) made a rebound after a 4-day losing streak.
The share price of RATCH traded at ฿45.75/share, increased ฿0.50/share or 1.10% with a trading value of 299 million baht as of 10:38 local time in Thailand on June 25, 2021.
RATCH was on a slump in the past few days, especially in the last two days when the share price lost a cumulative of 12.56% after the announcement of a capital increase of 769,230,770 shares at a par value of 10 baht each, totaling 7,692,307,700 baht.
Capital Nomura Securities (CNS) had a short-term negative view on the capital increase due to the dilution effect (control dilution around -35% and price dilution around 8%, while EPS dilution depends on the earnings of Paiton), but positive in the long run over the investment in large-sized power plants. In addition, CNS reiterated “BUY” rating with a target price at ฿67.00/share.