Maybank Expects SET at 1,600pts by Year End amid Vaccine Rollout as Profit Driver

Maybank Expects SET at 1,600pts by Year End amid Vaccine Rollout as Profit Driver.

Maybank Kim Eng stated that SET-listed companies reported total net profit of THB90.846b for 4Q20 (-39% QoQ, -61% YoY) as of March 2, 2021. The sector with weak performance, mostly are those involved in the service sector, which were affected by the COVID-19 epidemic, such as airport, airline and hotel businesses.

Maybank also found that the transportation sector had a net loss of up to THB91b while tourism posted a total loss of over THB4.5b. However, many industrial groups involved in the global economic recovery saw solid recovery starting in 4Q20 (both QoQ and YoY) such as petrochemicals (+182%QoQ, +957%YoY), automotive (+29%QoQ, +237%YoY) and packaging (+24%QoQ, +42%YoY).

 

The Thai economy in 2021 is expected to recover. Maybank maintained its forecast for market EPS and this year-end SET index target of 1,600 points, responding to positive developments in vaccine distribution combined with economic stimulus through global monetary and fiscal policy. This will be a profit driver in many industry groups to achieve remarkable growth this year.

The industries that will have good EPS growth in the year 21-22 include petrochemicals, media, and automotive. The main groups that, if the share price correct, will be a good opportunity for accumulating, are energy, banking and electronics.

 

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