Daily Strategy for Investors on November 29, 2019

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

 

Investment Ideas:

1) Thai stock market yesterday (28 Nov) dropped due to the concerns about trade negotiations after the US supported the protesters in Hong Kong.

2) Regional stock markets decreased 0.2% – 0.5%, except Japan. However, the Thai stock market dropped more.

3) Domestic negative factors outweigh after the government is not stable.

4) Keep an eye on the OPEC meeting next week (5-6 Dec 2019).

5) Investment strategy remains focusing on selective stocks.

6) The SET index today, we expect it to be around 1,590 – 1,608 points.

 

Stock & Comment
BCH – TP ฿20.60/share
BEM – TP ฿12.50/share
PTG – IAA Consensus TP ฿25.88/share

 

Pick of the day: BCH (BUY; AWS TP Bt20.60)

The social security fund revised up flat fee per capita to be effective on 1 January 2020, benefitting the company as projects under the Social Security scheme, which accounted for 33% of the company’s total revenue.

In the 3Q19, the number of insured persons registered with affiliated hospitals revised up by 9.9% YoY. By 2020, the company expects the number of insurers to grow 5-6% YoY.

Currently, BCH opens more specialized medical centers to maximize user base in the future, both Thai and foreign customers, especially IVF Center which has expected the FY2020 target to be 420 cases.

Moreover, the opening of new hospitals in Thailand and overseas to expand cash-based customers while modifying treatment formation to Tertiary Care, which is a service by specialized physicians to increase revenue.

AWS expects the FY2020 profit to grow by 13% YoY and the potential to grow better than the overall industry. We recommend BUY with a target price of Bt20.60 with a 19% YoY upside from the current price

BCH remains strong in a full uptrend from the occurrence of Daily, Weekly, and Monthly Buy Signal. BCH’s next target is at Bt17.70 and Bt18.40, respectively. Stop-term stop loss point is at Bt16.80 (Resistance: 17.40, 17.60, 17.80; Support: 17.10, 16.90, 16.70)