Kaohoon’s Top News on September 22, 2021

– The Siam Commercial Bank (SCB) to summarize a major business restructuring plan today (September 22) by splitting its auto title loan and leasing businesses. SCB has a loan balance of 200 billion baht at the present. The new business will be listed on the Thai stock exchange next year, with a market capitalization of 210 billion baht. SCB announced a joint venture agreement with Advanced Info Service (ADVANC) yesterday (September 21) to establish a company called AISCB Co., Ltd. (AISCB) to provide digital lending via online platforms. SCB will divide its credit and peer-to-peer lending businesses in order to enter the crypto currency market.

– Major Cineplex Group (MAJOR) is expected to pay an extra dividend of 1 baht per share, representing 4.7% of consolidated net income, following the realization of a profit of over 2,820 million baht from the sale of Siam Future Development (SF) shares. As a result, analysts recommend a “BUY” rating on MAJOR with a target price of 28 baht for 3Q21 earnings of estimated 2,000 million baht.

– B.Grimm Power (BGRIM) is set to raise its clean energy portfolio from the current 30% in order to support the Ministry of Energy’s decarbonization and elevated use of clean energy policies. BGRIM’s mission is to utilize energy storage systems to maximize the efficiency of electric generation.

– Rajthanee Hospital (RJH) anticipates a record net profit in 3Q21, owing to an increase in COVID-19 patients. RJH recently acquired a 20-rai plot of land in Saraburi Province in preparation for the construction of a new 138-bed hospital. The company intends to expand its hospital branches throughout the country.  

– The Stock Exchange of Thailand (SET) has revised the SET50 and SET100 indices’ calculation methods, removing stocks with a low free float and/or being placed in the cash balance. According to analysts, DELTA is expected to be excluded from both the SET50 and SET100, while the remaining ten stocks, including BBL, SCB, KBANK, SCC, BDMS, CPALL, CPN, BANPU, MINT, and LH, are expected to be weighted up by passive fund investment. Additionally, BAM is expected to re-list on SET50.