Citi Research downgraded Supalai Pcl to 'neutral'
from 'buy' and cut the stock's target price to 19.2 baht from
21.7 baht, reflecting earnings downgrade due to slower low-rise
housing sales and a risk of construction delays.
Supalai shares were up 0.5 percent at 19.6 baht, with a
year-to-date gain of 10.7 percent, underperforming a 24 percent
rise of the broader property subindex.
The broker said Supalai could face construction delays and
rising competition in the provincial markets, which could lead
to slower take-up of new projects. It cut Supalai's 2013
earnings forecast by 16.8 percent.
"Labour shortages could become more acute in 2013 as more
government infrastructure projects are implemented. The risk of
construction delays for Supalai is high because it primarily
relies on conventional construction methods even as its peers
gradually move to a pre-cast system," the broker said.
1146 (0446 GMT)
(Reporting by Viparat Jantraprap; Editing by Jijo Jacob)