Daily Strategy for Investors on October 29, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on October 29, 2019, pointing out some of the must-know events in the equity market as follows:

 

Investment Ideas:

1) Overseas factors have improved and US-China trade negotiation is likely to have a good progress. Foreign stock markets respond positively.

2) SCC (AWS TP Bt345.00) announced the 3Q19 profit of Bt6.2bn which was 5% lower than expected. The outlook in 4Q19 and throughout 2020 is not bright mainly due to HDPE petrochemical business. As a result, AWS lowers the FY2020 profit estimate and SCC target price from Bt400 to Bt345 based on 15x PER of 2020. Recommend only HOLD.

3) PTTEP (AWS TP Bt148) will announce the 3Q19 performance on 30 October with an expected net profit of Bt10.6bn or down by 23% QoQ but up by 2% YoY. Recommend BUY.

4) ADVANC (AWS TP Bt250) Consensus expects net profit of Bt8.6bn or up by 11% QoQ and up by 26% YoY with a bright direction. The business condition is on tailwind. Recommend BUY with a target price of Bt250.

5) Expect today’s index range of 1,595 -1,605 points. Recommended stocks are PLANB, ADVANC and AMATA.

 

Stock & Comment
PLANB – TP ฿9.69/share
ADVANC – TP ฿250.00/share
AMATA – TP ฿30.50/share

 

Pick of the day: PLANB (IAA Consensus Bt9.69)

PLANB also benefits from the increase in out-of-home media (OOH Media) which is expanding more outstanding than other media. The OOH media business is expected to grow by 4% – 5% while the overall media business is expected to be stable YoY.

The IAA Consensus estimates earnings per share (EPS) in the year 2019 – 2020 to grow by 10.3% YoY and 26.3% respectively. Previously, the company reported EPS’s 6 M19 at Bt 0.09  per share, representing 45% of EPS’2019 assessed by consensus at Bt 0.2 0 per share.

During 2H19, the company plans to expand investment to create a competitive advantage from the following:

1) The company planned to extend its digital media footprint through Bangkok Jam with over 40 additional digital displays in key strategic locations in Bangkok and expand other out-of-home media focusing on static media, airport media and point-of-sale media through collaborations with public and private sectors to offer advertising media that cater to diverse groups of target markets.

2) engagement marketing business will be developed and expanded continuously in order to enhance communication effectiveness between consumers and product and service brands as well as promote brand loyalty desired by marketers. The Company currently has 3 categories of quality content which are sports, music and Esports. In the future, the Company planned to develop other types of content to respond to the diverse interests of consumer groups; for instance, and

3) PLANB and VGI as the 2 leading operators in out-of-home media mutually agreed to cooperate in gaining a competitive edge in out-of-home market to capture market shares from both traditional media and online media. This alliance will provide integrated marketing communication solutions for the business ecosystem comprising advertising, digital services and logistics.

PLANB is likely to be in an uptrend due to the occurrence of both Daily & Monthly Buy Signal. PLANB is only waiting for the re-emergence of Weekly Buy Signal when it can close the weekly market above Bt8.85. New high is at Bt9.50. PLANB has short-term stop-loss at Bt8.40. (Resistance: 8.80, 9.05, 9.55; Support: 8.35, 8.10, 7.60).