Kaohoon’s Top News on November 23, 2021

– TRUE and DTAC will conduct a stock swap to convert existing shares in TRUE and DTAC in the following ratios: 1 existing share in TRUE to 2.40072 new shares in the new company; and 1 existing share in DTAC to 24.53775 new shares in the new company. Additionally, the two parties propose to undertake a conditional voluntary tender offer for TRUE and DTAC at THB 5.09 and THB 47.76, respectively. Meanwhile, the National Broadcasting and Telecommunications Commission (NBTC) stated that no official could prevent the amalgamation of TRUE and DTAC as it does not violate any rules or regulations. According to analysts, DTAC and TRUE might see a 23% valuation increase, while ADVANC could see a 13% increase.

– ADVANC and DIF soared yesterday in response to the TRUE-DTAC merger. Analysts anticipate AIS to be the top gainer from the merger of two big telecommunications companies, which will result in less competition in the telecom industry. Meanwhile, DIF has the potential to grow its fund asset base through the opportunity to acquire additional DTAC cell towers. Analysts rate DIF as a “BUY” with a price target of THB 15.99.

– EA plans to begin commercial production of lithium-ion batteries on December 12, 2021, with a goal of increasing capacity from 1 GWh to 4 GWh over the next 2-3 years. As a result, the company anticipates a 20% increase in revenue this year.

– The FTSE All World Index is prepared to cut its weighted in the Thai stock market to US$30 million and reduce its investment in ten big-cap stocks, including PTT, CPALL, SCC, SCB, AOT, KBANK, ADVANC, BDMS, GULF, and PTTEP, to an average of US$3.26 million-US$1 million on December 17, 2021.

– GULF and PTT will enter into the signing ceremony for the development project of Laem Chabang Port Phase 3 on November 25, 2021. The construction is scheduled to start in late 2023.

– Yesterday (November 22), UBE climbed 12.26%, challenging its IPO price. Analysts recommend “BUY” with a target price of THB 3.20, citing an anticipated 86 percent increase in earnings to THB 543 million in 2021. Recently, UBE reached an agreement with Thailand Institute of Scientific and Technological Research to collaborate on the development of the BCG Model for industrial and agricultural innovation.