Kaohoon’s Top News on October 4, 2021

– CPF‘s board of directors approved a resolution for a share repurchase program of up to 10 billion baht from October 15, 2021 to April 14, 2022. On the same day, CPF also approved its subsidiary CPP’s delisting from the Hong Kong Stock Exchange. Analysts forecast that the share repurchase program will boost CPF’s EPS by 3-5% in 2022, while the withdrawal of CPP from Hong Kong Exchanges will ramp up CPF’s earnings in 2022 by 8-10%. Analysts have set a target price of 32 baht and recommended a “BUY” rating. 

– GULF joined Sintel to develop data center business in response to the rapid growth in digital infrastructure globally. Additionally, GULF confirmed that the COD of the 5,300MW IPP project will proceed as planned once the GSRC project reaches its full capacity of 2,650MW, with an annual revenue target of 4 billion baht.

– This month, the Bank of Thailand will introduce debt consolidation. Analysts anticipate a minor effect on large banks, with expected SCB to benefit the most from this new measure as the largest creditor with collateral.

– BBL, KBANK, BEM, CPN, MAJOR, SPA, ORI, CRC, DOHOME, HMPRO, COM7, SPVI, BJC, and CPAL were selected by analysts as reopening stocks to benefit from new fiscal stimulus measures starting in 4Q21. Analysts confirmed an upward trend in those stocks in October, following the alleviation of negative factors.

– ADVANC is expected to report a net profit of 6,688 million baht in 3Q21, up 2.7% YoY, as the company’s online service and call center offset temporary store closures. As a result, revenue from mobile business and AIS Fibre’s home internet services will continue to expand, bringing the nine-month earnings to 20,372 million baht. ADVANC was recommended as a “BUY” by analysts with a price target of 210 baht. 

– PTT partnered with BIG to announce the commencement of Southeast Asia’s first air separation unit, with an investment cost of 2 billion baht. The air separation unit will produce industrial gas using LNG’s cold energy for 450,000 tons per year. Meanwhile, Mr. Montri Rawanchaikul, Chief Executive Officer of PTTEP, revealed his aspiration to strengthen the core petroleum exploration and production (E&P) business, prepare for challenges and explore investment opportunities in new forms of energy for long-term growth.