CGSI Raises Thai Stock Target to 1,690 Points

MGR Online•Economy•6d ago

Reader Briefing

CGS International (Thailand) has increased the SET index target for the end of year 69 to 1,690 points based on stronger-than-expected corporate profits.

•CGSI raised the SET index target from 1,630 to 1,690 points.
•The analyst team increased the EPS estimate for the market in year 69 by 8%.
•CGSI updated its Top pick list to include 14 stocks, adding CPALL and PTT while removing ERW and CRC.
•Net profits for studied Thai listed companies rose 10% YoY and 14% QoQ in Q2/69.

Overview

•CGSI increased the SET index year-end 69 target from 1,630 points to 1,690 points.
•Net profits of Thai listed companies studied by CGSI increased 10% YoY and 14% QoQ in Q2/69, led by the energy and petrochemical groups.
•If energy and petrochemical groups are excluded, studied companies saw net profits decrease by 25% YoY and 6% QoQ in Q2/69.
•CGSI recommends Overweight positions in medical, tourism, consumer goods, and industrial estate groups.
•CGSI recommends selective investment in utilities and financial businesses, while maintaining weight in energy/petrochemicals and real estate.
•CGSI recommends Underweight positions in transport and food groups.
•CGSI notes the SET is trading at a 12-month forward P/E of 15.9 times, which drops to 13.5 times excluding DELTA.
•CGSI identifies high oil prices, decreasing tourist numbers, and political uncertainty as downside risks.

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Key Entities

Organization

CGS International (Thailand)(บล.ซีจีเอส อินเตอร์เนชั่นแนล (ประเทศไทย))

A brokerage firm whose analysis department adjusted the SET index target and provided investment recommendations.

CGSI

The abbreviated name for CGS International (Thailand).

DELTA

A company with the largest market cap in the market and a very high valuation.

ERW

A stock removed from CGSI's Top pick list after the price increased significantly.

CRC

A stock removed from CGSI's Top pick list after the price increased significantly.

CPALL

A stock added to CGSI's Top pick list due to expected increases in same-store sales and profit in Q4/69.

PTT

A stock added to CGSI's Top pick list due to expected profit increases in Q4/69.