Daily Strategy for Investors on September 30, 2019

Asia Wealth Securities (AWS) has made an analysis for the trading session on September 30, 2019, pointing out some of the must-know events in the equity market as follows:

 

Investment Ideas:

1) Local factors remain positive from the “Taste Shop Spend” measures that have started to see the results (recommend CPALL) and improved tourism outlook (recommend AOT BAFS and ERW). Recommend selective on shares that benefit in these sectors.

2) Global trade issues resume being intense before a new round of negotiation will take place (10-11 October).

3) AWS has a negative view on the investment outlook after the US has considered issuing measures to limit investment of Chinese companies and to remove Chinese companies from the US stock market (since the beginning of 2019, there are 156 Chinese companies registered in Nasdaq and the New York market of which at least 11 are companies of Beijing government).

4) The latest VIX Index revised up by 7.2% to 17.22 points.

5) AWS sees the SET framework this week (30 September – 4 October) at 1,620 – 1,665 points.

6) Today, AWS estimates the index range at 1,630 – 1,660 points. Still focusing on selective investment strategy. AWS picks CPALL, AOT, BAFS, ERW, MINT, SCB, KKP, CPF and ORI.

7) Today’s recommended stocks are CPN, AOT and CPALL.

 

Stock & Comment

CPN – TP ฿85.00/share

AOT – TP ฿84.00/share

CPALL – TP ฿94.00/share

 

Pick of the day: CPN (BUY; AWS TP Bt85.00)

1) Central Village is well received from tourists with more than 20,000 people per day which is higher than the company expected at 17,000 people per day. It is expected to help increase an occupancy rate in the 4Q19 to 85% from the current level of 75%. In addition, the concern on the dispute with AOT has lessened after the Administrative Court issued an injunction.

2) “I City” Mall in Malaysia launched in the 2Q19 will help boost revenue in the second half of the year to be higher. It is expected that an occupancy rate at the end of 2019 will be at 80%. (from the current level of 70%)

3) The transfer of four completed condominiums in the 2H19 with a total project value of over Bt4.30bn.

4) The company plans to sell real estate to CPNREIT at the end of 2019 worth over Bt8bn.

5) It is expected that the company will conclude the development plan for the former British Embassy (area 22 rai of land) which is a joint development project with the Hong Kong Land Group by the end of this year.

6) CPN remains in the downtrend from the occurrence of Weekly and Monthly Sell Signal. CPN has only a short-term strength from the occurrence of Daily Buy Signal. When considering CPN, its first target is at Bt69.00 with a primary target of Bt72.25. The short-term stop-loss points is at Bt64.50 (Resistance: 68.75, 69.75, 70.75; Support: 67.00, 66.00, 65.00).