Shares in Tipco Asphalt Pcl rallied to a near 2-1/2-year high in strong volume as the government’s planned investment on infrastructure projects over the next seven years lifted the earnings prospect of the asphalt producer.
Tipco Asphalt shares were up 4.3 percent at 73.25 baht on Monday, climbing at one point to 74.50 baht, the highest since November 2010. About 6.2 million shares changed hands, 2.8 times the full-day average over the past 30 sessions.
Maybank Kim Eng Securities raised the stock’s target price to 90 baht from 76 baht per share, reiterating a ‘buy’ rating.
Of the 2.2 trillion baht ($75.12 billion) in infrastructure loan to be disbursed over 2013-2020, 275 billion baht will be spent on road development, with around 10 percent set to be allocated for asphalt, the broker said in a report.
“TASCO sales should rise by around 12 billion baht over the next 5-6 years or 2 billion baht a year as a result of all these developments,” it said.
Reporting by Viparat Jantraprap in Bangkok; Editing by Jijo Jacob