Asia Wealth Securities (AWS) has made an analysis for the trading session on December 13, 2019, pointing out some of the must-know events in the equity market as follows:
1) The US President Donald Trump approved in principle for entering into Phase One of the trade agreement with China. Such a move will save China from being imposed an additional 15% tariff on imported goods by the deadline on 15 December 2019. As a result, the US-China trade situation has positively relaxed and benefits global and Thai stock markets.
2) BBL penetrates investment in Indonesia Bank with a total investment of Bt80-90bn. AWS sees it as a positive factor for investing in the country with the largest and fastest-growing Internet Economy in ASEAN.
3) Today’s index range is expected to be 1,560 -1,600 points. Recommend stocks are GLOBAL, SCC, PTTEP, PTTGC and BBL.
Stock & Comment
GLOBAL – TP at ฿18.05/share
SCC – TP at ฿396.00/share
PTTEP – TP at ฿147.00/share
PTTGC – TP at ฿58.00/share
BBL – TP at ฿223.00/share
Pick of the day: GLOBAL (BUY; IAA Consensus Bt18.05)
GLOBAL is an associate company of Siam Cement Group (SCC). SCG Distribution Co., Ltd. holds 30% of shares as of 30 September 2019. GLOBAL has 63 branches with 5 additional branches YoY.
GLOBAL has expanded branches in Cambodia and jointly invested with local companies to expand branches in Laos and Myanmar by investing in associated companies including Global House Cambodia Co., Ltd (GLOBAL holds 55% of shares) and Global International (GLOBAL holds 50% of shares). AWS sees the potential of building materials stores to further expand in these three countries, especially Myanmar.
Retail businesses in the SCC group have improved the retail business of building material to a joint online and offline. Omni Channel Marketing is a business that can integrate technology and marketing strategies together both through sales channels at a store or offline and online sales through the internet.
AWS sees that retail business in Thailand and in this region is still able to be adjusted to reach more consumers through Omni Channel. GLOBAL’s growth opportunity remains very high in Thailand including in Cambodia, Laos and Myanmar, especially Myanmar where SCC intends to penetrate the market with the GLOBAL brand. AWS has a positive view on GLOBAL which a retail business of the Siam Cement Group as it has a strong brand and could generate more sales innovation in the future. IAA Consensus estimates its target price at Bt18.05.
GLOBAL remains in the uptrend from the occurrence of Weekly & Monthly Buy Signal. However, GLOBAL still has short-term weakness from the occurrence of Daily Sell Signal. If it could successfully resume a new Daily Buy Signal by closing above Bt17.10, its next target would be Bt17.40 and Bt18.00, respectively (Resistance: 16.90, 17.00, 17.10; Support: 16.70, 16.60, 16.50).