Daily Strategy for Investors on November 19, 2019

Daily Strategy for Investors on November 19, 2019.

Asia Wealth Securities (AWS) has made an analysis for the trading session on November 19, 2019, pointing out some of the must-know events in the equity market as follows:


Investment Ideas:

1) The market is still waiting for the clarity of the trade negotiation between the US and China.

2) The NESDC released the 3Q19 GDP to grow by 2.4%YoY with a 9M19 growth of 2.5%YoY. The GDP was supported by a 4.2% increase in private consumption, a 2.8% growth in investment, divided into a 2.4% growth in the private sector and a 3.7% growth in government.

3) For the full-year 2019, the economy is expected to grow by 2.6% with a contraction in export value of -2.0%, while the private consumption and investment might expand by 4.3 and 2.7%, respectively. The headline inflation rate could be 0.8% on average and lastly, balance of trade is likely to have a surplus of 6.2% of GDP.

4) Thai Baht became appreciated again to Bt30.18 per US$

5) The SET is forecasted to be in a range of 1,600-1,622 points. Recommend stocks are ORI, EPG, and TCAP.


Stock & Comment
ORI – TP ฿10.00/share
EPG – TP ฿9.20/share
TCAP – TP ฿61.00/share


Pick of the day: ORI (BUY; AWS TP Bt10.00)
AWS states that stock prices in the real estate sector have dropped sharply. ORI stock price dropped by 13% since the end of last month, but the announcement of 3Q19 performance was not so bad, it still closed to the expectation. The 3Q19 net profit was at Bt687mn (-23%YoY and -7%QoQ),

The 4Q19 net profit is expected to be outstanding for the year due to the transfer of new projects including a stock release of more than Bt10bn. Thus, AWS recommends “BUY” with a target price in 2020 of Bt10.00 and expect dividend yield will be high at 9.0% in 2020.