January 11, 2013 / 4:21 AM / in 5 years

STOCKS NEWS THAILAND-PTT Global Chemical rallies to 10-month high

Shares in petrochemical firm PTT Global Chemical Pcl gained as much as 2.4 percent to a 10-month high amid expectations of improving outlook for its core petrochemicals.

PTTGC shares were up 1.4 percent at 73.75 baht, having hit 74.5 baht, the highest since March 9, 2012. That compared with a 0.12 percent loss of the energy subindex and a 0.41 percent fall of the broader SET index.

Maybank Kim Eng Securities said it had raised PTTGC’s 2012 and 2013 earnings projection by 16.3 percent and 10.2 percent respectively, along with its upgrades of paraxylene and benzene spread assumptions by 15 percent and 23 percent.

It rated the stock a ‘buy’, saying PTTGC was its top pick in the sector. Maybank said it expects the energy sector to outperform the market in 2013, driven by the recovery of the Chinese economy.

“After raising our earnings projection, our target price rises to 86 baht from 74 baht. The current PTTGC valuation is still cheap, trading on a price to book value of 1.4 times versus an average of regional peers of 1.7 times,” it said.

1109 (0409 GMT)

(Reporting by Viparat Jantraprap in Bangkok; Editing by Jijo Jacob)

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09:50 STOCKS NEWS THAILAND-CIMB raises Sansiri price target on strong business plans

CIMB Research raised its price target for Sansiri Pcl SIRI.BK to 5.31 baht from 4.20 baht, citing management guidance on strong business plans as the property developer aimed to boost sales and market share in the Thai housing market.

The broker reiterated an ‘outperform’ rating on the stock. Sansiri shares fell 2 percent to 3.90 baht on Thursday amid broad market weakness, with the benchmark SET index .SETI down 1.2 percent. It had risen 11 percent so far in 2013 versus a 7.2 percent gain of the broader property subindex .SETPR.

“SIRI’s 2013 business plan is aiming for new highs in both presales and sale revenue. Guidance for gross margins is 33-35 percent,” the broker said in a report.

The stock traded at an attractive valuation, with price to forecast 2013 earnings ratio of 11 times versus peer average of 13 times, the broker said.

0945 (0245 GMT)

Reporting by Viparat Jantraprap in Bangkok; Editing by G.Ram Mohan

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