Warning on Sirivadhanabhakdi stocks
Brokerages have warned investors to move cautiously when buying into firms majority-owned by tycoon Charoen Sirivadhanabhakdi while their stock prices are rising sharply.
Investors should also keep a watch on Berli Jucker on a likely new deal, they said.
Based on a four-month survey, companies majority-owned by the Sirivadhanabhakdi Group saw sharp rises in stock prices, with a 66.6-per-cent increase in combined market capitalisation to Bt220 billion.
Thai Beverage’s stock price yesterday closed at 0.395 Singapore dollar, down by S$0.005 from Monday.
The stock prices surged 40-291 per cent, with Univenture rising the most.
UV’s price jumped 291 per cent from Bt2.48 per share to Bt9.70. The stock closed at Bt9.90 yesterday. Its market capitalisation soared 239.15 per cent to Bt741 billion.
Serm Suk followed with a 155-per-cent surge in its share price to Bt240. The stock closed at Bt279 yesterday. Its market capitalisation increased 137.6 per cent to Bt63.8 billion.
Oishi’s share price went up 65.4 per cent to Bt220 with a 39.2-per-cent rise in its market capitalisation to Bt41.2 billion. The stock closed at Bt225 yesterday.
Berli Jucker’s share price shot up 47 per cent to Bt59.25 with yesterday’s close at Bt66.25. Its market capitalisation jumped 49 per cent to Bt94 billion.
Golden Land Property Development advanced 45 per cent to Bt8.05, with yesterday’s close at Bt7.95. Its market capitalisation increased 25.8 per cent to Bt9.12 billion.
An analyst at Globlex Securities said its research team suggested a slowdown of investment in stocks with high pressure for profit-taking and higher-than-fundamental prices, particularly Berli Jucker, Univenture, Golden Land Property Development, Serm Suk and Oishi.
These stocks witnessed sharp rises in prices and could see profit-taking, he said, suggesting investors be cautious on them.
The stocks, majority-owned by the Sirivadhanabhakdi Group, moved on speculation for expected support in business integration, prompting price surges above their fundamentals, an analyst at Asia Plus Securities said.
“Despite their bright future outlook, these share prices rose faster than expected. Oishi in particular has a very high price-to-earnings ratio per share. Its share price is Bt226 but this year’s P/E ratio is as high as 35 times and next year’s ratio is at 27 times. We recommend slowdown in investment,” she said.
An analyst at Trinity Securities said: “Prices of the stocks, particularly Berli Jucker, rose too much on speculation. Berli Jucker jumped by more than 20 per cent in one day. And that has triggered us to expect a new deal.
“But it’s unclear now. Investors should wait and see rather than join the speculation,” the analyst said.
