Daily Strategy: Krungsri Securities Recommends GULF, GPSC and BGRIM for Power-Gen Plays

Mr. Chaiyot Jiwangkul recommended GULF, GPSC and BGRIM due to growth factors, expecting SET Index at 17,00pts after reopening.

Stocks in Asia traded in a volatile session slightly above the flat line, but mostly higher on Wednesday as a Chinese private survey showed shrinking factory activity in August. Meanwhile, Australia’s gross domestic product rose 0.7% in the June quarter.


As of 9:50 local time in Thailand, Nikkei rose 1.20%, Shanghai Composite increased 0.03%, Hang Seng Index gained 0.15%, ASX 200 dropped 0.46%, and IDX Composite dipped 0.20%.

Yesterday, SET Index closed at 1,638.75 points, increased 4.98 points or 0.30% with a trading value of 117 billion baht.


The Caixin/Markit manufacturing Purchasing Managers’ Index for August came in at 49.2 on Wednesday, indicating a contraction for the month.

Meanwhile, the Australian Bureau of Statistics reported an expansion of gross domestic product (GDP) by 0.7% in the June quarter, decreased from a 1.9% growth in the March quarter, but still topped forecasts of 0.5%.


Mr. Chaiyot Jiwangkul, Assistant Director of Krungsri Securities (KSS), stated through “Kaohoon JorTalad Program,” that the index at 1,700 points is possible, but must come with a reopening as investors looked past the relaxation of lockdown measures to the scheduled reopening in October, given by the government.

As the power generation stocks supported the market in yesterday’s movement, Mr. Jiwangkul stated that the sector has positive outlook, but investors should focus on individual power generation stocks with growth factors such as GULF, GPSC and BGRIM.

Mr. Jiwangkul raised BANPU and GPSC for today’s recommendation. BANPU has already priced in the dilution effect from the capital increase while coming with a warrant and higher coal price. KSS gave a target price for BANPU at Bt13.00 per share.

As for GPSC, Mr. Jiwangkul stated that the battery business for GPSC is a driving factor for the company, which could help add more revenue in the event of lower power generation revenue or no new capacity added. KSS gave a fair value of GPSC at Bt75.00 per share.


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