Kaohoon’s Top News on February 4, 2022

Headline: GULF joins Singtel and ADVANC to establish high-quality data center business

Gulf Energy Development (SET: GULF) has entered into a joint development agreement with Singtel and Advanced Info Services (SET: ADVANC) for the purpose of establishing a data center business in Thailand. The data center is anticipated to begin building in the mid of this year and begin contributing revenue in the middle of 2023. Meanwhile, the Pak Lay hydropower project in Lao PDR will sign a power purchase agreement (PPA) with Thailand’s Electricity Generating Authority by 2Q22. Analysts estimate that this joint project will enhance ADVANC’s revenue by 15-20 percent and earn approximately THB1,000 million in revenue per year. Hence, analysts maintain a “BUY” rating with a target price of THB252.00. 


Headline: Analyst recommend country’s reopening theme for investing in February, AMATA, AOT, KCE, MINT and CPALL are top pick

DBS Vickers Securities (Thailand) forecast the SET Index to move in the range of 1,610-1,690 points in February, recommending country’s reopening theme with five top pick stocks; Amata Corporation (SET: AMATA), Airports of Thailand (SET: AOT), CP All (SET: CPALL), KCE Electronics (SET: KCE) and Minor International (SET: MINT). In addition to the index outlook, DBSVS expects the SET to reach 1,800 points by year’s end.


Headline: WGE expects 10% growth in revenue this year 

Well Graded Engineering (SET: WGE) predicts double-digit revenue growth in 2022, citing a backlog of over THB3,000 million and aims to obtain bids totaling THB4,000 million. The company will continue to pursue new opportunities in both public and private sectors. 


Headline: BKD anticipates a profit recovery this year on the strength of a THB1,500 million backlog

Bangkok Dec-Con (SET: BKD) expects a profit recovery this year on the strength of a THB1,500 million backlog and the launch of a new subsidiary focusing on luxury housing projects in 1Q22.


Headline: KTC and SAWAD rally on speculation that BOT will maintain its current interest rate for the remainder of 2022

Recent days have seen a rally in finance stocks, with Krungthai Card (SET: KTC) and Srisawad Corporation (SET: SAWAD) leading the gain. According to analysts, a surge in the finance sector came from a positive earnings outlook for 2022 and speculation that the Bank of Thailand will maintain its benchmark interest rate at 0.50 percent for the remainder of this year. Analysts maintain a “BUY” recommendation on KTC with a target price of THB76.00.