Sawasdee – August 13, 2021

Tags: THREL, SAT, PTT, MTC, LH, ESSO, EPG, CPALL, CHG, CENTEL, BLA, BEM, BCP, BAM, AOT

To move sideways at 1,524-1,550. The market is likely to rebound today but upside is limited

Market outlook & strategy
We expect the SET to move sideways with lower bounds at 1,530 and 1,524. Rebound is anticipated at the lower bound of sideways while we see a slowing in foreign fund outflow as the baht depreciation has slowed. However, upside is limited at resistance of 1,540-1,550 from rampant COVID-19 spread in the country. Tactically, we urge investors to begin accumulating 25% of their portfolio when the market moves around 1,500. Buying must be selective and speculation should be done with great caution.

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Company analysis
AOT – 3QFY21: Loss as expected – Neutral
BAM – 2Q21: Beats on NPA gains – Outperform
BCP – 2Q21: Aided by stock gains but down QoQ – Neutral
BEM – 2Q21: Beat expectations on lower cost – Outperform
BLA – 2Q21: Miss on combined ratio – Outperform
CENTEL – 2Q21: Loss as expected – Neutral
CHG – 2Q21: Record high, beat estimates – Downgrade to  Neutral
CPALL – 2Q21: Core profit in line with estimates – Neutral
EPG – 1QFY22: Record high, beating estimates – Neutral
ESSO – 2Q21: Stock gain still the key profit driver – Underperform
LH – 2Q21: In line with estimates – Neutral
MTC – Loan growth hike offset by NIM cut – Outperform
PTT – 2Q21: Solid profit but missed estimates – Outperform
SAT – 2Q21: Met estimates – Underperform
THREL – 2Q21: Beat on premiums but miss on margin – Outperform