Ten popular stocks see a strong recovery
The Thai stock market is gradually heating up after going through a significant decline three weeks ago, when the Stock Exchange of Thailand index (SET) plummeted to 1,371.22 points.
Since November 17, however, the SET-100 index has rebounded, closing at 1,415.78 points, an increase of 44.56 points or 3.25%.
The following 10 stocks in the SET index have shown the strongest recovery:
1 CBG - Carabao Group, 24.03% recovery
The holding company engaged in manufacturing, marketing, selling, and distributing energy drinks and other beverages, has recovered by 24.03% and analysts predict that the profits in the fourth quarter of this year will expand well due to the seasonal uptick in beverage sales. The beer business is particularly bolstering revenue. Additionally, the early profit margin is benefiting from reduced electricity costs.
2. GPSC - Global Power Synergy, 21.94% recovery
GPSC, a leading stock in the power plant sector, has bounced back following a substantial decline in global crude oil prices. Analysts have marked it as a laggard stock with high growth prospects in the latter half of this year, projecting a 107% profit growth compared to the previous year and a decreased fuel cost (Ft).
3. TIDLOR - 21.81% recovery
This Bangkok-based non-bank financial services provider and an operator of technology-enabled, inclusive financial services, offers a full suite of vehicle title loans (motorcycles, cars, pickup trucks and tractors), hire-purchase financing for used trucks, and insurance brokerage services, using the brand of Ngern Tid Lor (or Money on Wheels).
Net profit for the third quarter of this year was about 1 billion baht, up by 11.7% from 901.1 million baht in the same period last year. For the first nine months of this year, the company recorded a net profit of 2.89 billion baht, a 2.3% increase from the same period last year.
4. MTC - Muangthai Capital, 21.53% recovery
The company is a non-bank financial institution service provider which mainly engages in providing loans secured against vehicle registrations, land title deeds loans, personal loans without collateral and nano finance under supervision, as well as providing hire purchase service, instalment loans and insurance brokerage
The finance sector shines in the third quarter of this year, with a net profit of 1.28 billion baht. In the same period last year, the net profit was 1.20 billion baht. For the first nine months of this year, the company reported a net profit of 3.55 billion baht compared to 3.96 billion baht in the same period last year.
5. SJWD - SCGJWD Logistics, 19.64% recovery
A major logistics and supply chain solutions provider, a joint venture between SCG Logistics and JWD Group.
SJWD showed a robust performance in Q3, with a net profit of 139.8 million baht, an 8.1% increase from the previous quarter. The company is confident that the last quarter will continue to show consistent growth.
6. NEX - NEX Point, 19.57% recovery
NEX Point engages in the commercial vehicle business providing integrated solutions and services.
NEX announced Q3 performance with a profit of 66.15 million baht, a 732% increase. They are confident in a strong Q4 performance with continuous revenue growth. The company also declared a stock repurchase plan, allocating a budget of 290 million baht to repurchase no more than 28.7 million shares, accounting for 1.42% of shares outstanding, starting from November 17 until May 17, 2024.
7. BGRIM - B. Grimm Power, 12.18% recovery
A Thailand-based energy company focusing on the development, financing, construction and operation of green-field power plants.
BGRIM has adjusted and stands out more than other power plant stocks, remaining a laggard stock or a stock whose price has not increased much compared to the industry, possibly due to recent drops in crude oil prices. This has affected the trend of other commodities like natural gas, which might also experience a downturn.
8.PTTGC - PTT Global Chemical, 11.76% recovery
PTT Global Chemical is a petrochemical company that specialises in synthesizing olefins and aromatics.
Management has indicated that the petrochemical industry had passed its low point as of the second quarter. They believe that from now on, there will be a gradual recovery and anticipate that within 1-2 years, the petrochemical industry will return to normal. They have already seen some price adjustments in certain products. Additionally, cooperation with the Chinese government's economic stimuli is a positive factor, stimulating the demand for petrochemicals. It is expected that there will be an increased import of petrochemicals from China in the coming year."
9.GLOBAL - Siam Global House, 11.76% increase
Siam Global House is a one-stop shopping home centre, which offers construction material, home decorative products, tools and equipment used in construction, home improvement, and household and gardening decoration in modern trade warehouse style.
The third quarter saw a 32% decrease in net profit to 525 million baht, compared to the previous year's 774 million baht, primarily due to reduced sales revenue and increased costs. In the first 9 months of this year, there was a 29% decrease in net profit to 2.1 billion baht.
10. ACE - Absolute Clean Energy, increase of 11.35%
The company is one of the country's largest producers and distributors of electricity from renewable energy and is the clean energy leader in Thailand. Its main business is holding shares in other companies that generate and distribute electricity and steam including other related businesses both in Thailand and other countries.
ACE reported Q3 revenue of 1.63 billion baht and a net profit of 316.8 million baht, a 0.3% increase from Q2, which was at 315.8 million baht. They are set to launch 6-7 biomass and solar power projects and have achieved a sustainable SET ESG rating of “AA” and a 5-star “Excellent” CGR rating this year.
Despite the encouraging figures, analysts say it remains to be seen if these stocks can sustain their price adjustments from the continuing positive factors.