Shares in Thaicom Pcl fell 0.87 percent to 22.80
baht despite brokers seeing its weaker third-quarter earnings as
only a short-term impact from a subsidiary's loss provision.
Thaicom posted a net loss of 107 million baht ($3.49
million) for the third quarter, attributed to the loss provision
of its subsidiary Mfone, whose divestment it announced on
Monday. [ ID :nSETz86MTa]
Several brokers believe the divestment deal will help the
company improve its earnings next year.
Broker KGI Securities rated the shares 'outperform' with
target price at 31 baht, saying that with the departure of
Mfone, the share valuation remains attractive.
"While the divestment in loss-making subsidiary Mfone caused
a short-term negative impact to Thaicom's earnings, especially
in the third-quarter, this is a non-cash item and won't
adversely affect our target price," KGI said in a note.
"However, the benefit of Mfone's departure is that the real
value of Thaicom will be unveiled in 2013," the broker added.
Broker Bualuang Securities rated the shares 'buy' with
target price at 33.50 baht.
"We have cut our 2012 net profit forecast by 65 percent to
factor in the one-time Mfone loss provision. But we have also
revised up our 2013 projection by 37 percent (to 1.17 billion
baht) to factor out assumed Mfone losses from Thaicom's
consolidated income," Bualuang said.
The divestment deal is expected to be completed by the end
of this year.
The main Thai index lost 0.43 percent.
1530 (0830 GMT)
(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by Jijo
($1 = 30.69 Baht)
11:20 STOCKS NEWS THAILAND-Land and Houses hits 19-day high
on Q3 profit
Shares in Land and Houses Pcl rose more than 2
percent to 9.10 baht, their highest in more than two weeks,
after the company posted strong third-quarter earnings backed by
sales growth and commercial estate development plans.
The country's biggest housing developer on Tuesday reported
third-quarter earnings of 1.52 billion baht ($49.54 million), a
68 percent rise over the previous year.
Broker Trinity Securities maintained its 'buy' rating on the
shares while raising the target price to 10.50 baht from 8.80,
citing the company's plans to expand into commercial estate to
"Higher investment in condominium developments, especially
into market segments outside of Bangkok, along with higher
rental income from commercial retail spaces and share profits
from Home Product Center, Quality Construction Products, and
Quality Houses, helped to boost the company's profit," Trinity
said in a research note.
"The sector to keep an eye on with growth potential is
commercial estate, particularly retail shopping malls in the
outer Bangkok area since in the next 5 years we will see several
mass transit routes completed," the broker added.
At 0415 GMT, Land and Houses was up 2.84 percent at 9.05
baht, while the broader Thai index was down 0.02
(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by
Anupama Dwivedi; firstname.lastname@example.org)
($1 = 30.69 Baht)