Finansia Syrus Securities expects a 2Q2019 profit of Energy Absolute Public Company Limited (EA) to hit a new high at THB1,355 million, increasing by 20% QoQ and 36% YoY.
Therefore, Finansia recommended “BUY” EA share with the target price at ฿62.00/share.
The high profit growth of EA in 2Q2019 is expected from the wind power plant with a full quarter of revenue recognition, and the solar power plant which could produce more electricity in the past quarter.
Moreover, EA is preparing to cooperate with the alliances which are CPALL, ROBINS, CALTEX and Bridgestone ACT for installing EA Anywhere. The target of installing EA Anywhere is 1,000 station within this year which currently, the installation has been done only 400-500 stations. Additionally, the revenue will be in a type of sharing revenue and EA does not need to pay for the rental which is a win-win situation for both.
KGI Securities has upgraded Banking Sector to Overweight (from Neutral) with four main reasons;
1.) Asset quality seems to be more resilience and more manageable
2.) Sign of fee incomes (non-transactional fee) recovery
3.) Undemanding valuation
4.) Attractive yield play
Moreover, KGI chose SCB and BBL to be the top pick among big banks as non-transactional fee recovery & partially offsetting transaction fee income reduction, and lesser exposure on SME will enable them to be less pressure in asset quality. KGI also stated to prefer small banks as yield play and upgraded rating of KKP and TISCO to Outperform, but downgrade TCAP and KTB to Neutral.