Analyst Picks 7 Strong Profit-Dividend Stocks after 4Q20 GDP Report Beats Forecast

Analyst Picks 7 Strong Profit-Dividend Stocks after 4Q20 GDP Report Beats Forecast

Analysts picked PTTEP, SCC, BAM, PTT, TISCO, SPALI and NER as stock to rejoice Thailand’s economic recovery following a better-than-expected 4Q20 GDP announcement, forecasting a bright profit and dividend payment this year. 


Asia Plus Securities (ASPS) stated that Thailand’s GDP contraction of 4.2% was better than the consensus projection of 5.7%, expecting economic activities will gradually improve once Covid-19 vaccine is distributed in late-Feb, while another at least 63 million doses for about 31.5 million people or 45.7% of Thai population are scheduled to begin vaccination later this year. ASPS believed vaccine distribution will have positive sentiment on the SET Index.


Rao Rak Kan (We Love Each Other) scheme with a 4,000 baht cash handout for 9.2 million people insured in the social security system under Section 33 and have bank deposits less than 500,000 baht is expected to have positive sentiment on both Thailand’s economy recovery and the SET Index, especially on commerce plays.  


With a gradual economy resume trend, ASPS has picked 7 stocks that are expected to deliver a bright earnings and good dividend this year including PTTEP (TP:฿118, P/E:16.2x, Yield 4%), SCC (TP:฿450, P/E:12.3x, Yield 3.7%), BAM (TP:฿26, P/E:22.5x, Yield 3.6%), PTT (TP:฿48.5, P/E:15.8x, Yield 3%). 


TISCO (TP:฿102, P/E:11.4x, Yield 7.5%), SPALI (TP:฿25.5, P/E:7.3x, Yield 5.5%) and NER (TP:฿6.2, P/E:8x, Yield 5%).


The Office of the National Economic and Social Development Council (NESDC) on Feb 15 has announced that Thailand 4Q20 GDP contracted 4.2%, which was better than an estimation of 5.4% contraction due to the recovery in consumption and private sector’s expansion.


Also, NESDC downgraded GDP in 2021 from 3.5-4.5% to 2.5-3.5%. Current account is expected at a surplus of 12.4 billion dollars.


Exports are forecast to expand 5.8% in 2021, and imports to grow 6.5%. Inflation in 2021 is expected at 1.2% from a speculation of 0.7-1.7%.