Daily Strategy for Investors on December 11, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on December 11, 2019, pointing out some of the must-know events in the equity market as follows:

 

1) Investors wait and see for clarity that the US will impose additional taxes on imported goods from China which is still not confident about the news that the US will delay the increase in tariffs on imported goods from China on 15 December 2019. The chance that the US will reach a trade agreement with China is flickering.

2) US stock market is being pressured by concerns about political factors in the US after the news that the US House of Representatives is preparing to vote to dismiss President Donald Trump.

3) Investors keep an eye on the Fed’s monetary policy meeting on 10-11 December, expect the Fed to maintain interest rates at this meeting after reducing interest rates 3 consecutive times this year.

4) Investors are still worried about the Thai economy and the political instability of the Thai government. In addition, LTF tends to be less popular with investors. If there is selling pressure, there will be less buying power continuously, which is a sign of a lack of important stock support of the Thai stock market.

5) Investment strategy ” The opportunity to buy when SET dropped” AWS sees that if the SET below 1,560 points, it is the buying zone.

6) Today’s index range is expected at 1,550 -1,560 points, recommend BDMS, AMATA, AOT

 

Stock & Comment
BDMS – TP ฿27.50/share
AMATA – TP ฿30.50/share
AOT – TP ฿84.00/share

 

Pick of the day: BDMS (BUY; AWS TP Bt27.50)

Although the hospital industry faced the domestic economy that is expected to weaken in 2020, it is expected to increase health insurance patients and international patients. In 9M19, the number of foreign patients increased by 7%YoY which comes from revenue from UAE patients (+ 78%), Oman (+ 67%), and Cambodia (+ 17%) because medical expenses in Thailand are not that high when compared to other countries.

The company has joined with partners to create new health insurance programs. It is expected that health insurance patients will be revenue drivers. In 9M19, health insurance patients accounted for 31% of total income and health insurance patients increased by 12%YoY including Thai patients increased by 11%YoY and international patients increased by 14%YoY

Pushing Bangkok International Hospital (BIH) into a smart hospital by using technology to help provide services such as computerized prescription systems, and electronic medical records, etc. In addition, using advanced technology to increase the efficiency of treatment and reduce side effects from treatment such as robotic X-ray arms, and physical therapy with a robot walking training, etc. The main target customers groups are both domestic and international customers with high purchasing power due to positioning as a 5-star Smart Hospital.

In this regard, AWS recommends BUY with a target price of Bt27.50 based on the DCF method. BDMS is likely to have a downtrend due to the occurrence of the Monthly Sell Signal, but in the short and middle term occurred Daily and Weekly Buy Signal with the important target price at a new high of Bt28.50. Short-term stop loss is at Bt24.10. (Resistance: 24.60, 24.70, 24.80; Support: 24.40, 24.30, 24.20).