Country Group Securities (CGS) forecasts that Global Plays such as imports (ASIAN, CBG, HANA, KCE, NER, and TU), Hospital Plays (BCH and CHG), and stocks with a positive second-quarter earnings outlook (BCPG, BGRIM, DOHOME, EPG, and SAPPE) would outperform the market for a while.
Bangkok Chain Hospital Public Company Limited (BCH) is a Top Pick stock. CGS has given BCH a “HOLD” rating and a target price of 28 baht, recommending short-term speculation on the strength of the earnings prospects. Net profit in 2Q21 is expected to be 740 million baht (+166% YoY, +129% QoQ), while net profit in 3Q21 is expected to hit a new record, owing to increased revenue from Covid-19 screening test service, treatment, and vaccine.
Meanwhile, Capital Nomura Securities (CNS) believes that the Thai market is lacking new interesting factors, but tension remains high as the number of Covid-19 cases continues to rise daily. For investment themes, CNS recommends Hospital Plays (BDMS, BCH, CHG and EKH) and Import Plays that will benefit from Thai baht weakness (KCE, HANA, TU, PM and ASIAN), as well as Earnings Plays, Tele Plays (ADVANC), Power Plays (GPSC) and Dividend Plays (TVO). CNS maintains investment weight at 50%.