– The total net profit of commercial banks in 1Q21 was 46.6 billion baht (-0.44% YoY, +48.19% QoQ), which is better than market expected. SCB reported the best operating result in the banking sector, earnings increased 9% to 10 billion baht. KTB’s earnings were 5.57 billion baht, while KBANK’s profit was 10.6 billion baht, growing 44% YoY.
Analysts have a positive view toward banking sector results, expecting the momentum to continue in 2Q21 as the provisions were lower compared to last year.
– Prayut said if the Covid-19 situation does not improve by next two weeks, more restrictive measures should be imposed. Meanwhile the Ministry of Health on April 21 clarified the partial paralysis after receiving the Sinovac vaccine that found in 6 medical staff was temporary.
Asia Plus Securities expected limited upside from the ongoing Covid-19 outbreak, maintaining the SET Index target this year at 1,670 points. Top pick sectors are banking, hospital and real estate.
– WGE signaled an outstanding earnings in 1Q21, affirming no effect from the third wave of Covid-19 on its operations. The backlog as of now is 3.2 billion baht. Also, WGE expressed confidence that total revenue this year will grow further, emphasizing income to reach 5 billion baht by 2023.
– Stocks in steel sector closed higher yesterday (Apr. 21) in line with rising steel prices as demand was greater than supply. TSTH spiked 19.47%, SAM soared 18.18%, while GJS rocketed 24%.
Analysts have given a “BUY” recommendation on MCS (TP: ฿21.9) and TMT (TP: ฿11).
– The Administrative Court of Thailand dismissed the petition by the Ministry of Transport – SRT to suspend the payment of 25 billion baht in compensation to Hopewell, stating that the Supreme Administrative Court has already handed down the final judgment.
– The Ministry of Finance prolonged the jet fuel tax cut until December 31, 2021 to support the country reopening in October. Analysts believe it will benefit stocks in the aviation industry like AAV and AOT.