Thai Stock Market Roundup August 14, 2019

A short summary to inform investors of what had happened in the Thai stock market on August 14, 2019

SET closed at 1,619.45 points, decrease 0.78 points or 0.05% with a trading value of THB 71.27 billion. The SET Index closed negatively by 0.78 points in the opposite direction of the regional market. A delight of the regional market might due to the announcement of the U.S. President Donald Trump which he would delay the 10% tariffs on Chinese cell phones, laptops, toys, and other consumer goods from the previous deadline on September 1st to December 15th.

The announcement came after the U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke with Chinese Vice Premier Liu He over the phone. Both parties agreed to discuss more detail on the phone within the next two weeks.

In terms of the domestic market, selling pressure from the bank sector had made the SET Index sharply decreased after Kasikorn Bank (KBANK) and Krung Thai Bank (KTB) announced the loan interest rate cut which narrowed down the Net Interest Margin (NIM) and profit. Although the U.S. announces to delay the tariff, all eyes are still on the trade war between the U.S. and China.

Proprietary Trading and Foreign Investors net sold THB 5,529.93 million to plunge SET Index lower by 0.78 points.

Stocks in Focus on 14 August 2019: CPF and TACC
      – CPF: The analyst recommended “Gradually Buy” CPF share with the Bloomberg Consensus target price of ฿33.50/share. The analyst stated that CPF has grown from a strong gross margin which has widened from 12.2% in the 2Q2018 to 13.9%. The strong gross margin has continued to grow from 1Q2019 the same as an increase in the price of pork in Thailand’s Market while the price of raw material and feed was cheap. Therefore, The analyst expected the 2H19 of CPF to grow continuously due to the Chinese and Vietnamese pork prices has recovered from a decrease in pork supply after AFS has eased up.
       – TACC: The analyst recommended “BUY” TACC share with the target price of ฿6.00/share. The analyst said that TACC profit was better than the analyst had expected and made a new high at THB 43 million, increasing 30%QoQ, 105% YoY. A rise of gross profit margin was due to a good product mix and having economy of scale from a good sales of beverages in every channel. The analyst believed that a 2H of TACC will continue to grow. Currently, TACC pays THB 0.10/share or 2.2% of the dividend yield. The ex-dividend date will be on 26 August.

HUMAN took over “TigerSoft” business, expecting to expand HR solutions to other markets.

GUNKUL reported a rise of ฿437 million in 2Q2019 profit from a sales revenue and profit sharing.

– Revenue from renewable energy shot BGRIM’s 2Q19 profit to 191%, Offering dividend of ฿0.15.

PTG’s profit increases to ฿428 million in 2Q19 from oil sales volume and rise of non-oil businesses.

BA’s 2Q2019 net loss hiked to ฿693 million from the decline in the airline business and high expenses.

RS‘s 2Q19 profit fell 45% due to a decrease in revenue from multi-platform (MPC) businesses and TV channels.

BEAUTY expected full-year revenue to reach ฿2.2 billion, offering ฿0.035 interim dividend.

SABINA’s profit grew 8.6% to ฿104 million from higher sales, paying ฿.57.00/Share dividend.

SISB’s profit grew with an increasing number of students, recording 150% hiked to ฿52 million in 2Q2019.

AQ reported a rise of 47% in 2Q2019 net loss, causing by falling in revenues and high expenses.

SMART records ฿5.71 million in 2Q2019 profit from an increase in sales volume and selling price.

SEAFCO’s 2Q19 profit rose 10% to ฿102 million from construction revenues and sale of materials.

NWR’s construction revenue dropped nearly 40%, dragging 2Q profit to plunge over 30 times.

ECF posted an increase of 16.5% in net profit to reach ฿4.10 million after S&A expenses decreased.

GRAMMY’s 2Q19 profit hiked 33% due to profit-sharing on investments and low expenses.

BJCHI recovered in 2Q19 to record a profit of ฿12.3 million  after the recognition of higher revenue

Top 10 Most Impact Shares on August 14, 2019