Daily Strategy for Investors on September 24, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on September 24, 2019, pointing out some of the must-know events in the equity market as follows:

 

Investment Ideas:

1) GRM revised up to USD10 per barrel and becomes a positive factor for the refinery sector, including BCP, TOP, SPRC, ESSO, IRPC, and PTTGC. AWS picks BCP as today’s Top Pick.

2) Electricity business has a lot of over expectation. Be cautious of the decline due to the high price as not much upside left. For GULF, the price has already fully valued.

3) Outstanding stocks were sold individually. AWS recommends to wait for the market downturn and find an opportunity to buy. AWS still like the fantastic 4; ADVANC, AOT, BEM and CPALL.

4) Pick defensive stocks which are safe stocks with good fundamentals and strong cash flow such as consumer products and property sector or those with high recurring income such as LH, CPN (wait to buy) as well as those with high dividend opportunity such as TCAP.

5) No positive factors in a short-term. Thai stock market index is quite prominently in the downtrend. Recommend holding more cash from 50% to 60%.

6) This week’s index range is expected to be 1,605-1,660 points. Recommended stocks are SCB and TCAP.

7) Today’s index range is expected to be 1,610-1,640 points. Recommended stocks are BCP, OSP and WHAUP.

 

Stock & Comment

BCP – TP ฿34.00/share

OSP – TP ฿45.00/share

WHAUP – TP ฿8.00/share

 

Pick of the day: BCP (BUY; AWS TP Bt34.00)

BCP is a top pick of the refining and petrochemical business groups. Initially, AWS estimates that the 3Q19 net profit of the refining and petrochemical businesses will rebound QoQ from a recovery of GRM but there is still a risk of falling prices and margins of petrochemical products. Therefore, AWS chooses refinery standalone like BCP that has no risk from the weak petrochemical business. BCP’s shares price still laggard. Currently, the share price is only trading at 9.3xPE’20 and 0.85xPBV’20 , lower than the average regional sector of 10.9xPE’20 and 1.06xPBV’20 .

BCP is likely to be in a downtrend (Downtrend) due to the Weekly & Monthly Sell Signal. BCP has only short-term strength from the Daily Buy Signal. BCP will be stronger in the medium term due to the new Weekly Buy Signal emerges when the weekly market is closed above Bt27.25. When considering BCP, the initial target is Bt29.25. The short-term stop loss of BCP is Bt27.00. (Resistance: 27.50, 27.75, 28.00; Support: 27.00, 26.75, 26.50)