HoonSmart.com >> Maybank Kim Eng Securities expects 1Q21 stock market, index fluctuations, economic recovery both at home and abroad. Low interest rate eases listed companies’ costs to boost profit targets Pulling foreign capital continuously Ready to set an index target at the end of the year 64 at 1,600 levels, focusing on the Petro-Bank-Real Estate-Finance group Selection of outstanding stocks for this quarter SCC-LH-TMB-SINGER
Mr.Wijit Arayapisit, Senior Director of Research at Maybank Kim Eng Securities (Thailand) or MBKET, said MBKET expects the SET to swing up in 1Q21 to respond to the economic recovery both at home and abroad. Driven by the fiscal policy expected to stimulate consumption. As well as strengthen the confidence of private investment In addition, the export sector tends to expand in line with the recovery of key trading partners. Combine to maintain the policy interest rate at a low level to help reduce costs These positive factors are expected to help increase the upside risk of listed companies’ earnings forecast revisions in the next period. Supporting foreign capital flows, there is still a chance to flow into the Thai stock market continuously.
“We estimate the year-end SET target at 1,600, focusing on petrochemicals, banking, real estate and finance. For the top stocks this quarter, we chose SCC, LH, TMB, SINGER,” said Vijit.
For 2020, the stock market has faced a major economic crisis, namely The COVID-19 epidemic has severely affected virtually all industry groups. This caused the profit of listed companies to drop significantly. However, MBKET found that many companies were able to turn the crisis into an opportunity by trying to cut costs. To help businesses get through difficult times
Over the past year, MBKET has also seen significant advances in medicine through a positive development of the COVID-19 vaccine that increases hope for the next economic recovery. Combined with monetary and fiscal policies from central banks and governments around the world, this is a factor that contributes further economic recovery. With various factors The stock market rallied significantly towards the end of 4Q20, and the positive momentum was expected to stimulate capital inflows to drive the SET upward swing in 1Q21.
Recommended stocks for this quarter are SCC shares with a target price of Bt430 with support from entering the phase of growth: 1.) Petrochemical business. The production capacity will increase 70%, focusing on HVA and innovation 2.) Building products business, focus on services and solutions to retail 3.) Integrated packaging business Aim to grow to double in 5 years
In addition, the 4Q20 earnings are expected to remain strong, supporting the petrochemical spread, despite the 45-day shutdown of MOC, and the company continues to expand investment with a good 4% dividend.
LH shares target Bt9.5, one of the largest stocks that has been laggard for 2 years, trading at -1SD of LT mean PE, with a forecast earnings growth of + 24% in the year 20 and + 11% in the year ’65 combined with a dividend rate of> 8%. The horizontal is still popular Related businesses such as hotels, apartments, shopping malls and banks Gradually recovering after the opening of the city Asset sale plan to recognize the special profit is ongoing.
TMB’s target of Bt1.4 Support factor from the forecast 3Q20 GDP of –6.4% YoY to recover from -12.1% in 2Q20 and 2021 + 5% expected. TMB’s asset quality improves in 3Q20. SME lending The group, the most vulnerable, is still at a low 7% of total loans.
Additionally, the strategy focuses on asset quality and balance sheet optimization rather than expansion of the credit portfolio. Expect 2021 + 19% profit from reduced reserves and higher fees.
SINGER shares are targeting Bt21.0, looking at small but bright stocks that are still in the growth stage, anticipating an all-time high profit in 2021.Furthermore, the loan portfolio continues to grow quarter-quarter while overall NPLs continue to decline year-on-year. before There is also a plan to lead the subsidiary The equity business was listed in 2022, unlocking the valuation value is 15 times cheaper than the group (PE’64 vs the group 18-20), while the growth of earnings per share (EPS) + 20% YoY is higher than that of the group. + 10-15% YoY
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