Thailand is experiencing a new wave of Covid-19, over 1,000 confirmed cases have been reported every day since early April before reaching a daily record of 1,767 cases on April 18. Since then the number of the country’s daily cases has been moving in the range of 1,400-1,700. Country Group Securities (CGS) was positive toward these figures as it could turn market attention to listed companies’ operating result reports.
BAY, BBL, KBANK, TMB and TISCO reported their 1Q21 consolidated financial statements yesterday. But only 2 banks have defeated Bloomberg consensus which are KBANK and TISCO.
Kasikornbank Public Company Limited (KBANK) reported a net profit of 10.6 billion baht in 1Q21, increased 44.10% from the same period of last year, as expected credit loss decreased 27% year-on-year and income from fees and service surged 7% year-on-year, while NPL stood at 3.93%.
Following analyst meeting yesterday, CGS still has a positive view toward KBANK’s 1Q21 earnings, thus maintained a “BUY” rating with a target price of ฿169.00/share.
For investment strategy, CGS suggested to accumulate KBANK and stocks in following sectors: retail (BJC, CPALL, CRC, DOHOME, GLOBAL), tourism (AOT, CENTEL, MINT), petrochem (IVL, PTTGC, SCC), shopping center (CPN) and stocks with unique factors like ICHI, STEC, TACC. In the short-term, CGS believed the share price of BBL, KBANK and TISCO will respond positively to operating results.