Daily Strategy for Investors on October 30, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on October 30, 2019, pointing out some of the must-know events in the equity market as follows:

 

Investment Ideas:

1) The stock market worldwide dropped and worried about the trade war. U.S. President Donald Trump and Chinese President Xi Jinping may not sign the first phase of trade agreement in APEC summit which will be held on 16-17 Nov in Chile.

2) Select those who are likely to win in tech war of each industry such as ADVANC (AWS TP Bt250.00) and SCB (AWS TP Bt153.00) since it is likely to jump quickly to meet KBANK’s price.

3) Oil price is likely to drop due to economic concerns.

4) The utility power sector shrank sharply after soaring for a long time in October. We recommend waiting to buy once the price becomes weak. The prominent stocks are BGRIM (AWS TP Bt46.00) and CKP (AWS TP Bt7.60).

5) PTTEP will announce its performance today.

6) The SET is expected to be in the rage of 1,580-1,600 points, dragged by the utilities power sector, which expected to be taken profits due to overvalued stock price.

7) Recommend stocks are AMATA, ADVANC, AOT, CKP, and WHAUP.

 

Stock & Comment
AMATA    – TP ฿30.50/share
ADVANC – TP ฿250.00/share
AOT – TP ฿84.00/share
CKP – TP ฿7.60/share
WHAUP – TP ฿8.00/share

 

Pick of the day: AMATA (BUY, AWS TP Bt30.50)

AWS expects the 3Q19 net profit at Bt695mn (+131%YoY and +67%QoQ) driven by the 470 rai of land transfer in this quarter. Meanwhile, the presales in 4Q19 are expected to increase continuously from  3Q19 at 230 rai, supported from the trade war between the US and China which resulted in the firms moving their production bases to South East Asia, especially Thailand and Vietnam.

Three industrial estates in Vietnam are expected to get a construction permit at the end of 2019 and begin to recognize revenue from land ownership transfer in 2020. Thus, AWS recommends BUY with a target price in 2020 at Bt30.50 based on a 18x PER.

AMATA is still in the uptrend due to the monthly buy signal. In the short term and medium term, AMATA is still weak from the daily & weekly sell signal. AMATA will return to strength with a new weekly buy signal, when the price can close above Bt25.25, considering AMATA, the main target price is Bt33.00. (Resistance: 24.60, 24.90, 25.00; Support: 24.30, 24.20, 23.90)