STOCKS NEWS THAILAND-Central Plaza Hotel hits record high

Wed Nov 21, 2012 12:09am EST

Related Topics

Central Plaza Hotel Pcl surged 4.29 percent to a record high of 24.30 baht, as a brokerage said it expects robust fourth-quarter earnings supported by the peak tourism season.

Broker Trinity Securities rated the shares 'buy' with target price at 25 baht, saying the high season in the fourth-quarter should continue to boost the company's growth on top of strong profit from the previous quarter.

"Fourth-quarter is considered high season for the tourism business, as well as entering new year's season, thus it is expected that hotel and food businesses will dramatically benefit from this," Trinity said in a note.

The broker said it expects the company's net profit for 2012 to rise 86 percent to 1.02 billion baht year-on-year. It said the company would benefit from increased purchasing power, expansion plans, expected earnings growth and improved financial outlook.

"Should see improved financial outlook, as the company had only set aside 1 to 1.4 billion baht to be invested in expansion annually....the interest-bearing debt to equity ratio is expected to decline every year since the company has no immediate plans to invest in major projects," the broker said.

At 0446 GMT, shares in Central Plaza Hotel were up 3.43 percent at 24.10 baht.

For the company statement, click

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

************************************************************

11:16 STOCKS NEWS THAILAND-Thanachart rates TMB as bank top pick

Thanachart Securities rated TMB Bank its top pick for the banking sector, while maintaining a 'buy' rating with target price at 2.20 baht, saying ING's decision to sell its Thai unit is unlikely to have a negative impact on TMB profit.

ING Groep NV currently holds a 31 percent stake in Thailand's TMB.

The Dutch financial group agreed to sell its Thailand asset management unit, ING Funds, to Singapore's United Overseas Bank Ltd for 10 million euros ($12.8 million) in cash, as the company pushed ahead with its Asian divestments.

"TMB is the main distribution channel for ING's financial products. The revenue from asset management business accounts for 5 percent of its income, in which 3.5 percent comes from TMB Asset Management, while the other 1.5 percent comes from ING Funds," Thanachart explained in a note.

"Since TMB will continue to sell financial products for ING after the deal, we do not expect much adverse effects on TMB's revenue and profit".

At 0404 GMT, shares of TMB gained 0.56 percent to 1.79 baht, while the banking subindex lost 0.53 percent.

For the company statement, click

(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by G.Ram Mohan; sinsiri.tiwutanond@thomsonreuters.com) ($1 = 30.6950 Thai baht)

FILED UNDER: