Overbought EA and NEX See Profit Taking, FSSIA Remains Positive on Earnings from EV Trends

Energy Absolute Public Company Limited (SET: EA) and Nex Point Public Company Limited (SET: NEX) faced a selloff on Tuesday, dropping by 5.75% and 4.50%, respectively, as both securities were overbought in the past few days, while reaching a strong resistance level yesterday.


Relative Strength Index (RSI) 14 days of EA and NEX indicates an overbought of both securities at 92.95% and 86.79%, respectively. In the meantime, the share price of EA and NEX had risen to their resistance level yesterday, closing at THB100 and THB20 per share, respectively. 

The share price of EA has never closed at THB100, marking the closing price yesterday a record high for the company. EA’s share price briefly broke the THB100 resistance level several times intraday in January 2022 and December 2021.

Meanwhile, late January was the last time NEX’s share price was able to close at THB20 or higher. The record high of the company was in early January 2022 at THB22.40 per share when the market was building the hype for the government’s sector over incentive for EV producers and users. 


FSS International Investment Advisory (FSSIA) stated that it maintained BUY recommendation on EA with a SoTP-based target price of THB122. With a solid set of potential e-bus orders from Thai Smart Bus and Thai Smile Bus in 2022-23. FSSIA believed EA is likely to achieve its earnings and sales volume assumptions for e-trucks and e-buses on the high pent-up demand for commercial EVs (buses and trucks) and passenger EVs pending the official announcement of the government’s incentive package.  

Meanwhile in the previous research from FSSIA, the paper wrote that among EV-related players in Thailand, FSSIA stated that EA (Target Price THB122) and NEX (Target Price THB26) – Thailand’s two leading players in the battery and EV businesses – will see their share prices outperform in 2022, thanks to the strong net profit growth momentum that we project in 2021-23 due to their fully integrated, first-mover advantage over competitors that has allowed them to timely capture regulatory benefits ahead of the booming demand for EVs expected in 2022 onward.