Kaohoon’s Top News on November 2, 2020

– The Government Saving Bank (GSB) expected to takeover AMANAH with an investment not over 2 billion baht by purchasing 500 million shares or 48.59% of the stake from Islamic Bank of Thailand. An additional agenda will be proposed to the Board of Directors in November to advance to car loans business. Meanwhile, the source close to the matter stated that a joint venture is not likely to happen due to a considerably high cost and will need around five years for a breakeven.

– CNS recommended six investment themes for this week including 1) Defensive & Strong Balance sheet stocks (INTUCH and ADVANC), 2) Politically Defensive (TU and CPF), 3) F&B (HTC, SAPPE, XO), 4) Recovery in 2021 (GULF, BCPG, SPALI, CENTEL, CPALL, CRC, IVL, TOP, PTTGC), 5) Industrial Estates Reallocations (WHA and AMATA), and 6) EV/ PHEV Car & 5G & Data Trend (KCE, HANA, SMT, WICE).

– The market expected TU to report its 3Q20 earnings this week, while Phillip Securities forecasted a profit of 1.8 billion baht, an increase of 31% due to higher sales revenue thanks to an increase in tuna price. As for the 9M20 outlook, the analyst expected TU to record profit of 4.5 billion baht, an increase of 64%, and recommended “BUY” at a target price of ฿18.90/share.

– IP signalled for an outstanding performance in 3Q20, supported by health products. Meanwhile, the company expected to introduce 2-5 new products to stimulate year-end sales. The analyst expected 3Q20 earnings to book 20 million baht of profit, an increase of 49.80%, and recommended “BUY” at ฿15.30/share.

– Maybank Kim Eng expected BAM to partially book an extraordinary item from DTA in 3Q20 to support its ability to issue a dividend payment around ฿1.00/share. This would be a short-term driver for BAM. Maybank recommended “Speculative Buy” with an IAA Consensus target price at ฿26.00/share.