2024-03-01 02:41:33
#StockTimes – KGI Securities (Thailand) examines 3 outstanding stocks, recommending speculation based on fundamental factors, including PTTGC giving a basic target of 46 baht. By 1) technical perspective Evaluate support level 37 baht / resistance level 39 -41.5 baht (Stop loss 36.5 baht) 2) Evaluate the price of Laggard refinery + petro stocks through the lowest point. The research department estimates that the refinery business will recover in 1Q24 from the value of Refining stocks recovered, while some petrochemical spreads (Aromatics and Polyolefins) began to recover due to excess supply that has increased in recent years. Starting to decrease this year 3) Upside from the Erawan field The research department estimates that there is a chance that PTTGC* will receive more ethane gas used as feedstock from the Erawan field starting April 1, which will increase raw material costs. together For PTTGC’s PE production* decreased 4) PBV was as low as 0.59 times, equivalent to -1 time the standard deviation from the past. While profits are expected to recover this year, ROE will recover from nearly 0% last year to +2.4% in 2024.
*Latest price 38.00 baht
Recommend NER stock with a consensus target of 6.53 baht. By 1) technical perspective Evaluate support level 5.65 baht / resistance level 6.0 – 6.1 baht in case of break through this resistance range. Evaluate the opportunity to test the next resistance level +/- 6.3 baht (Stop loss 5.5 baht) 2) Evaluate the trend of rubber prices increasing. Continuing this summer, the research department will evaluate the results from both i) supply factors, namely seasonal factors (rubber sheds leaves Feb. – May) + results from the El Nino phenomenon (hot, dry weather) and ii) demand Measures to stimulate the Chinese economy Will support the price of rubber to continue increasing in 1Q – 2Q (recently, the price of rubber blocks in the Singapore market increased +5% YTD) 3) Valuation is not expensive, low PE, high dividends, Forward PE is as low as +/-6.0 times and consensus expects Dividend yield this year +6.0% … Most recently paid dividend for this year 0.29 baht/share (yield 5%) up XD on 23 Apr.
*Latest price 5.70 baht
Recommend SFLEX with a basic target of 6.0 baht. By 1) technical perspective Evaluate the support level at 3.28 baht / resistance level at 3.4 -3.5 baht in case of Break through this resistance range. Evaluate that there is an opportunity to test the next resistance level +/- 3.7 baht (Stop loss 3.20 baht) 2) Evaluate Earnings momentum, continue to make new highs this year, report 4Q23 profits as expected, and we evaluate this year’s profit trend, continue to make new highs. Expecting 1H24 profits to grow YoY, HoH (recognition of income from JV Vietnam) / 2H hoping to make a new high quarterly (Vietnam is high season + JV and TU* start production) 3) Valuation is cheap while profits move forward to New. high Forward PE is as low as +/-12.5 times (-1.5 times the historical standard deviation) while this year’s profits are expected to grow +17% YoY.
*Latest price 3.30 baht
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