CIMB Securities maintained its 'neutral' rating on Thai Oil
Pcl with a target price of 66.75 baht, saying its
purchase of additional 19 percent stake in Thaioil Power Company
Ltd is a positive move.
Thai Oil said on Monday it acquired a 19 percent stake in
Thaioil Power on top of its 55 percent holding. Thaioil Power
currently owns and operates a 118-megawatt and 700-megawatt
"While we see this acquisition as a positive move, we
believe the impact is insignificant. We continue to view Thai
Oil as trading stock with highly volatile earnings from its core
refinery and inventory fluctuations," CIMB said in a note.
The brokerage, however, said it prefers PTT Global Chemical
, due to cheaper gas feedstock for both olefin and
"We also believe that Thai Oil lacks volume growth and
earnings sustainability compared to PTT Global Chemical's core
olefin earnings and rising utilisation rate," the broker added.
Shares in Thai Oil fell 0.75 percent to 66.25 baht, while
PTT Global Chemical rose 0.38 percent to 65.50 baht.
1510 (0810 GMT)
(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by Jijo
11:21 STOCKS NEWS THAILAND-Thanachart Securities still
positive on telecoms after court ruling
Thanachart Securities kept its 'overweight' rating on the
Thai telecom sector, saying the Central Administrative Court's
rejection of a petition against the recent 3G auction could help
reinstate confidence over the country's 3G efforts.
The Office of the Ombudsman had submitted the case to the
court to decide whether the Oct. 16 auction was conducted fairly
under the constitution and frequency allocation laws. Critics
say the telecom companies colluded on pricing at the auction.
"We believe the 3G licensing process will be able to move as
planned, while worries had subsided as Advanced Info Service,
Total Access Communication, and True Corp had paid a 50 percent
deposit of the bidding price and completed the required
paperwork," Thanachart said.
The brokerage said it expects the NBTC to issue the 3G
licence by Jan. 18, while telecom operators will be able to
provide full service by the second half of 2013.
"Unlike the market, we don't believe 3G investment will
lower the profitability and growth in the future for the
operators, since demand for 3G network had been proven to be on
the rise while regulatory costs went down".
Thanachart expected the industry to achieve a 22 percent
profit growth in 2013 and 19 percent in 2014.
The telecom subindex was up 0.64 percent. True Corp
was flat after touching a high of 5.15 baht. Total
Access Communication rose 0.86 percent to 87.75 baht,
while shares in Advanced Info Service was down 0.45
percent at 219 baht.
(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by