MSCI will reduce its weight in the Thai Index from 1.83% to 1.73% today (May 27), which is calculated using the closing price. As a result, passive investment funds may have sold over 10.5 billion Thai shares on the index review’s initial effective date. Analysts advise investors to speculate on SCGP and CBG in light of their inclusion in the MSCI Global Standard Index. Simultaneously, they recommend buying fundamentally sound stocks such as PTT, KBANK, INTUCH, SCC, TU, EGCO, CPALL, and CPN despite the short-term impact of MSCI’s weight revision. Additionally, analysts urge a speculative buy on newly included stocks to the MSCI Small Cap Index, including ACE, PSL, RCL, SCCC, and SINGER.
Bangkok Chain Hospital (BCH) anticipates record revenue and net income in 2Q21 as Covid-19 testing increased to 500,000 from 120,000 in 1Q21. Chalerm, the chairman of BCH, stated that Thailand intended to double the stockpile of Moderna vaccine to ten million doses from five million doses. The first shipment of doses is scheduled to arrive in Thailand in August. Meanwhile, the Charoen Pokphand Group (CP) issued an official statement denying any connection to the Chinese Sinovac purchases.
Silicon Craft Technology (SICT) has set a 20% sales growth target for this year, following a new high income of 101 million baht in 1Q21 and a net profit of 20 million baht, accounting for 58% of total 2020 net profit. Despite the microchip shortage, SICT is confident in its abilities to tackle the issue with effective management.
The Executive of JMT Network Services (JMT) has set a debt buyout target of 6,000-10,000 million baht for this year. Additionally, the company indicates its readiness to acquire CitiGroup’s non-performing loans. Analysts predict JMT to grow at a breakneck pace in the second half of 2021 following the right adjustment of JMT-W2, which has pushed down the D/E ratio to 1.07x, giving a maximum target price of 58 baht per share.
Interlink Telecom (ITEL) forecasts revenue to achieve 5,000 million baht by 2025, driven by both traditional and new S-Curve business. Sales are expected to reach 2,800 million baht in 2021. Meanwhile, Interlink Communication (ILINK) reiterated its sales target of 6,000 million baht, citing a 4,627 million baht backlog. Revenue is expected to reach 2,406 million baht in 2021.