Asia Plus Securities (ASPS) indicated that the SET is still in panic over the new UK Covid-19 variant cluster and the third wave of pandemic. These concerns may prompt the SET to face short-term volatility. However, ASPS believed the market correction this time might not be heavy compared to the previous correction during the second wave of Covid-19 outbreak and the UK coronavirus strain does not weigh importantly on the SET.
For investment strategy, ASPS recommended accumulating stocks that have good fundamentals and limited downside risk with huge upside potential, therefore giving “BUY” rating on 13 stocks as follows:
1. GFPT Public Company Limited (GFPT) has 17.6% upside from a target price of ฿14.00/share.
2. B.Grimm Power Public Company Limited (BGRIM) has 31.8% upside from a target price of ฿58.00/share.
3. Electricity Generating Public Company Limited (EGCO) has 28.5% upside from a target price of ฿230.00/share.
4. Advanced Info Service Public Company Limited (ADVANC) has 29.4% upside from a target price of ฿220.00/share.
5. VGI Public Company Limited (VGI) has 26.9% upside from a target price of ฿8.50/share.
6. Ratch Group Public Company Limited (RATCH) has 29.4% upside from a target price of ฿65.00/share.
7. Osotspa Public Company Limited (OSP) has 12.6% upside from a target price of ฿38.00/share.
8. Bangkok Expressway and Metro Public Company Limited (BEM) has 24.4% upside from a target price of ฿10.20/share.
9. TTW Public Company Limited (TTW) has 29.1% upside from a target price of ฿15.10/share.
10. BTS Group Holdings Public Company Limited (BTS) has 39% upside from a target price of ฿12.80/share.
11. PTT Public Company Limited (PTT) has 24.3% upside from a target price of ฿48.50/share.
12. MK Restaurant Group Public Company Limited (M) has 10.2% upside from a target price of ฿59.00/share.
13. Intouch Holdings Public Company Limited (INTUCH) has 28.6% upside from a target price of ฿74.00/share.
Additionally, ASPS stated that in foreigners’ eyes, they have a positive view towards Thai economy in the mid to long term as most recently, the IMF has revised Thailand’s GDP growth forecast from 4.6% to 5.6% in 2022. Overall, the economy is expected to rebound.
However, investors still have to watch the Covid-19 situation during Songkran’s long holiday next week, as the SET Index could weaken if the infection speeds up but remain robust if infection is under control.