Shares of Sansiri Pcl edged up 1.27 percent to 3.20 baht on strong fourth-quarter outlook after the housing developer reported a lower-than-expected third-quarter net profit.
Sansiri reported a net profit of 409 million baht ($13.32 million) on Wednesday due to a drop in condominium revenue. For the company statement, click
Brokerages are hopeful that the weaker third-quarter earnings will be offset by a dramatic rise in income in the fourth quarter after the remaining backlog from expected condominium transfers is recognised.
Kiatnakin Securities said the company had a backlog of 12 billion baht ($390.88 million) from 12 condominium projects, which would boost its fourth-quarter earnings to the highest this year and should continue into the first quarter of 2013.
The broker rated the stock a ‘buy’ with a target price of 3.80 baht.
“Despite a soft third-quarter earnings, we expect Sansiri’s fourth quarter to achieve a net profit of as high as 10 billion baht,” Kiatnakin said in a research note.
(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by Subhranshu Sahu; firstname.lastname@example.org)
($1 = 30.7 Baht)
11:23 STOCKS NEWS THAILAND-True Corp falls after losing bid for English Premier League
Shares in True Corporation Pcl dropped 0.41 percent to 4.80 baht as brokers expect the company to lose subscriptions after it lost a bid for the English Premier League (EPL) broadcasting rights.
Thailand’s only fully-integrated telecoms firm lost to Cable Thai Holding (CTH), the newly established cable television operator, as the sole pay-TV operator to broadcast the EPL for the next three seasons, from 2013-14 to 2015-16.
Several brokers expressed concerns that the loss may hit the company’s ratings and viewer’s subscription as the EPL is considered one of TrueVision‘s, the company’s cable business, strongest attractions with the highest viewing rate.
Krungsri Securities rated the stock a ‘sell’ with a target price of 3.80 baht, saying the loss due to a delayed 3G operating licence may further hit the company’s earnings in 2013.
“We expect the company to continue to post losses in 2013’s earnings after losing its stronghold in failing to secure the licence to air the premier league, and thus is likely to lose its customer base to its rival,” Krungsri said.
“On top of this, in the short-term, there is still uncertainty over its delayed 3G operating licence, which is still pending on the administrative court’s ruling.”
The broader Thai index was up 0.08 percent.
For the company statement, click
Reporting by Sinsiri Tiwutanond in Bangkok; Editing by Subhranshu Sahu; email@example.com