Daily Strategy for Investors on November 4, 2019

Daily Strategy for Investors on November 4, 2019.

Asia Wealth Securities (AWS) has made an analysis for the trading session on November 4, 2019, pointing out some of the must-know events in the equity market as follows:


Investment Ideas:

1) China’s economic figures have improved, while the US employment figures are better than analysts had expected.

2) The atmosphere of the US-China trade negotiation has improved.

3) Crude oil price revised up sharply, while Saudi Aramco prepares for IPO in Riyadh Stock Market in November-December.

4) The high-speed internet market has higher price competition. The package price for 1 gigabit per second is only Bt800-1,000 per month indicating ADVANC entering the fierce competition in this market. It affects the future of JAS and TRUE.

5) ADVANC has finished the Mobile War and open for fierce competition in broadband market. It is expected that from now on, JAS, TRUE will be in a very difficult situation.

6) Keep an eye on the BOT’s meeting on 6 November as it is expected that the policy interest rate will be cut by 0.25% from 1.50% to 1.25%. It benefits financial sector. This round, AWS likes KTC, MTC, SAWAD and TCAP.

7) Expect this week’s index range to be 1,580-1,616 points. Recommended stocks are KTC and TCAP.

8) Expect today’s index range to be 1,585 -1,600 points. Recommended stocks are WHAUP, KTC and TCAP.


Stock & Comment
WHAUP – TP ฿8.00/share
KTC – TP ฿53.00/share
TCAP – TP ฿61.00/share


Pick of the day: WHAUP (BUY; AWS TP Bt8.00)

WHAUP expects to have better quarterly performance from further business expansion, especially the acquisition of 34% stake in water supply business from Duang River Water Plant in Hanoi, Vietnam with the total production capacity of tap water in phase 1 and 2 of 110 million cubic meters per year. There is an opportunity to increase production capacity in the future as demand for tap water in Vietnam is high but it could not accommodate the need for usage.

For business in Thailand, WHAUP currently has a power generating capacity of 554 megawatts and will grow in line with the growth of WHA’s industrial estates. At present, WHAUP’s PER is only a 11x with a high dividend rate of 5%. Therefore, AWS recommends BUY with a target price of Bt8.00.

WHAUP remains in the uptrend from the occurrence of Monthly Buy Signal. However, it still weak in both the short and medium term from the occurrence of both Daily and Weekly Sell Signal. The target price is Bt6.40. If it could successfully break by closing above Bt6.40, the next target will be Bt6.75 and Bt7.15, respectively. (Resistance: 6.30, 6.35, 6.50; Support: 6.20, 6.15, 6.00)