FSS Eyes TOA at THB36 with Higher Profit Outlook in 2H22

The share price of TOA Paint (Thailand) Public Company Limited (SET: TOA) closed THB2.75 or 9.32% higher at THB32.25 per share, the highest price of Tuesday’s trading session and also the highest in eight months as well.


FInansia Syrus Securities (FSS) gave an analytic view on TOA in August with a positive overall outlook in 2H22 from its third selling price adjustment in which the company would recognize full-quarter income, coupled with a slowdown in raw material prices.

Moreover, sales also accelerated from the low base of last year that were impacted from a lockdown and construction camps. Meanwhile, the property sector is pushing for more real estate projects, including economic reopening, resulting in higher demand for house paint, which would accelerate TOA’s 2H22 profit potential, compared to the first half of the year and the same period of last year.

The fourth quarter is the best of the year due to seasonal factors, FSS wrote. While profit would decline 12% this year, FSS expected it to accelerate 18% in 2023. FSS recommended “BUY” with a target price at THB36.0 per share.