Maybank Expects SET at 1,600pts by Year End amid Vaccine Rollout as Profit Driver

Maybank Kim Eng stated that SET-listed companies reported total net profit of THB90.846b for 4Q20 (-39% QoQ, -61% YoY) as of March 2, 2021. The sector with weak performance, mostly are those involved in the service sector, which were affected by the COVID-19 epidemic, such as airport, airline and hotel businesses.

Maybank also found that the transportation sector had a net loss of up to THB91b while tourism posted a total loss of over THB4.5b. However, many industrial groups involved in the global economic recovery saw solid recovery starting in 4Q20 (both QoQ and YoY) such as petrochemicals (+182%QoQ, +957%YoY), automotive (+29%QoQ, +237%YoY) and packaging (+24%QoQ, +42%YoY).

 

The Thai economy in 2021 is expected to recover. Maybank maintained its forecast for market EPS and this year-end SET index target of 1,600 points, responding to positive developments in vaccine distribution combined with economic stimulus through global monetary and fiscal policy. This will be a profit driver in many industry groups to achieve remarkable growth this year.

The industries that will have good EPS growth in the year 21-22 include petrochemicals, media, and automotive. The main groups that, if the share price correct, will be a good opportunity for accumulating, are energy, banking and electronics.