STOCKS NEWS THAILAND-GFPT gains on hopes of profit turnaround

Mon Nov 19, 2012 4:04am EST

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Shares in poultry producer GFPT Pcl gained 0.7 percent to 7.20 baht as a brokerage said it expects a profit turnaround for the company in the fourth quarter and 2013, after it posted weaker-than-expected result for the first nine months of 2012.

Broker Phillip Securities rated the shares 'accumulate' with target price at 8.3 baht.

After cutting its profit estimate for GFPT in 2012 to 14.7 billion baht ($478.37 million) due to a 54 million baht loss in the first 9 months of this year, the broker raised its 2013 earnings forecast to 601 million baht on hopes of a profit turnaround.

"Earnings are poised for a turnaround on the back of a recovery in selling prices and optimism that Thailand will resume chicken exports to the European Union in 2013, which could reduce excess supply in Thailand," Phillip said in a note.

The broker said chicken prices have risen to 39 baht per kilogram due to higher demand and production cutbacks after farmers were hit with a substantial rise in raw material costs.

"In addition, a quarterly rise in export volume and gradual increase in selling prices due to higher raw material cost push would be other drivers of earnings improvement for GFPT, but its affiliate GFN is however likely to remain in the red with fourth-quarter loss expected to be similar to the third-quarter".

The broader SET index was up 0.2 percent.

1600 (0900 GMT)

For the company statement, click

(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by Jijo Jacob; sinsiri.tiwutanond@thomsonreuters.com)

($1 = 30.77 Baht)

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12:05 STOCKS NEWS THAILAND-PTT Global Chemical outperforms main index

Shares in PTT Global Chemical Pcl rose 1.67 percent to 61 baht, outperforming a 0.06 percent loss in the main index.

Broker Kasikorn Securities rated the shares a 'buy' with target price at 79 baht, citing added production capacity to boost the petrochemical industry's growth.

"Management said they will expand debottleneck production for olefins by 10 to 30 percent as well as a 10 to 15 percent increase in paraxylene production," Kasikorn said in a note.

"Results from the added capacity should be realised by the end of this year, while expansion will be completed with two years".

Fourth-quarter's production capacity for olefins is expected to be at 91 percent, the same as the previous quarter. This on top of a better-than-expected third-quarter earnings signalled a bright outlook for the petrochemical industry, the brokerage said.

1158 (0458 GMT)

For the company statement, click

(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by G.Ram Mohan; sinsiri.tiwutanond@thomsonreuters.com)

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11:21 STOCKS NEWS THAILAND-Kiatnakin keeps overweight on industrial estate; upbeat on Q4 growth

Kiatnakin Securities maintained its 'overweight' rating on the industrial estate sector on hopes that strong investment interests would support fourth-quarter earnings growth.

"We still maintain a positive view on the sector since investment outlook, both domestic and foreign, points toward an expansion and interest beyond its main client, the automobile industry," Kiatnakin said in a note.

The broker chose Hemaraj Land and Development Pcl and Amata Corp Pcl as its picks within the sector. It has a 'buy' rating on both shares and a target price of 3.50 baht on Hemaraj shares and 22.30 baht on Amata.

Amata gained 0.66 percent to 15.30 baht and Hemaraj rose 0.64 percent to 3.14 baht. Rojana Industrial Park Pcl led the sector's gain with a 1.06 percent rise at 9.50 baht.

The main Thai index rose 0.03 percent.

"We expect fourth-quarter earnings in the industrial estate sector to continue to grow from the backlog of around 5 billion baht for Amata and 3 billion baht for Hemaraj, which had yet to be recognised," Kiatnakin said.

The record-high number of investment applications that Thailand's Board of Investment received in the nine-month period of 2012, with a total value of 800 billion baht ($26 billion), reflects the growth in the industrial estate sector, the brokerage said.

1121 (0421 GMT)

($1 = 30.77 Baht)

(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by Anand Basu; sinsiri.tiwutanond@thomsonreuters.com)

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