“DBS Vickers” believed banking-energy-tourism-logistics sectors have bottomed out, and are starting to pick up along with economic recovery, recommending KBANK, PTT, PTTEP, ERW, CPF and BEM to outperform. The nine-month period profit of listed companies expanded 25% compared to a previous quarter, but contracted by 49% compared to the same period last year, however, the figure was as expected.
The securities stated that it has revised its view on 4 principle sectors; banking, energy, tourism and logistics, as their earnings have bottomed up and are gradually picking up in line with economic recovery, easing financial institution risks. Commercial bank fundamentals are also strong enough to get through the Covid-19 pandemic crisis, driving Bank of Thailand to allow banks to resume dividend payment.
Government stimulus packages are moderately boosting domestic tourism, expecting the recovery in 2021 or once successful coronavirus vaccine is available next 12-15 months.
For investment theme, recommended Kasikornbank Public Company Limited (KBANK) (TP ฿107.00/share), PTT Public Company Limited (PTT) (TP ฿43.00/share), PTT Exploration and Production Public Company Limited (PTTEP) (TP ฿101.00/share), The Erawan Group Public Company Limited (ERW) (TP ฿3.30/share), Bangkok Expressway and Metro Public Company Limited (BEM) (TP ฿10.00/share), BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF) (TP ฿7.20/share).
Charoen Pokphand Foods Public Company Limited (CPF) (TP ฿36.00/share), GFPT Public Company Limited (GFPT) (TP ฿15.40/share), Bangkok Dusit Medical Services Public Company Limited (BDMS) (TP ฿25.00/share), Chularat Hospital Public Company Limited (CHG) (TP ฿3.00/share), and Rajthanee Hospital Public Company Limited (RJH) (TP ฿29.00/share).