Kaohoon’s Top News on October 14, 2021

– GULF recognized its investment in INTUCH as an equity method of 2 billion baht annually, rather than a consolidated investment. Analysts forecast GULF’s 3Q21 earnings to be 3 billion baht, bolstered by full-quarter recognition from INTUCH as electricity demand increased.

– PTTGC adjusted its plans in response to rising energy prices by switching to naphtha. PTTGC, on the other hand, benefits from high petrochemical product prices, and anticipates that the final process for the tender offer of VNT will conclude in October. PTTGC intends to acquire a 16.24% stake in VNT between November and December, spending 7.5-8 billion baht. Analysts anticipate a profit of more than 7 billion baht in 3Q21, up 600% on the back of increased petrochemical margins.

– RJH made a 352 million baht investment in RAM to acquire a 1.04% stake. Additionally, RJH set aside 150 million baht for stock buybacks of 1.92% of its shares. Analysts expect RJH’s share price to rise to 37-39 baht, advising investors to monitor the par split from 1 baht to 0.50 baht, which will increase stock trading liquidity. 

– The shareholders of T have approved the issuance and offering of up to 54,044 million newly issued ordinary shares of the company at an offering price of 0.02 baht per share, which is a private placement of newly issued shares to David Van Dau and Panicha Dau. Two major Laotian investors will receive 51,994 million shares worth a total of 1,039.88 million baht.

– Refinery stocks are on the rise as oil demand has recovered, boosting refining margins, while jet fuel has begun to recover following the resumption of global travel. Increased oil refineries are expected to benefit TOP-BCP-SPRC-IRPC-ESSO. Analysts anticipate that demand for oil will return to pre-COVID levels, elevating TOP to the top pick on the back of an estimated net profit of 2,943 million baht in 3Q21, a 311% increase.