Kaohoon’s Top News on January 12, 2021

– Tisco Securities warned investors to be more cautious on DELTA, KTC and IVL due to a low free float and high trading volume, while the share prices also spiked sharply ahead of fair value. Meanwhile, SET is proposing three new measures to increase restriction on low free-float stocks.

The analyst stated that if KTC closed today’s session higher than ฿82.50/share, its P/E will be higher than 40x and at risk of being imposed a “cash balance” measure.

– The analyst expected PTTGC’s 4Q20 earnings to reach 6,576 million baht, an increase of 1,659% YoY due to higher GPM in the petrochemical business and higher GRM. A jump of 4Q20 earnings will result in the company to book a net profit of 371 million baht, rebounding from a net loss of 4.5 billion baht for its 9M20 financial statement. In the meantime, PTT and IRPC joined in a feasibility study on Melt Blown factory and NBL in Rayong Province to lower material costs for its medical and utility businesses.

– JR projected its 2021 revenue to increase more than 2,000 million baht after signing a new contract worth 200 million baht, while expecting to sign another 200 million baht worth of contract in January 2021. The signings will top up its backlog to 6,400 million baht and will book 87 million baht of profit in 2020. The analyst recommended “BUY” at ฿8.80/share.

– EGCO and the Industrial Estate Authority of Thailand (IEAT) jointly established an industrial estate “EGCO Rayong” in Map Ta Phut, Rayong Province, on its own land at a total area of 621 rai (993,600 sq.m.) The company expected two-year development, projecting to open the estate in 2022.

– Analysts picked KBANK as top pick in 2021 with a target price at ฿130.00/share due to the potential of net profit recovery was higher than its peers by 10%. KBANK has a considerably low P/BV rate at 0.6x. SCB and TISCO trailed KBANK in the second and third position with a forecast of 8% net profit growth along with high dividend yield.