InnovestX Securities (INVX) recommended 10 outstanding stocks for 2024, namely; AMATA, BBL, BEM, BDMS, CPALL, CRC, GULF, OR, SCC, and SCGP, for accumulation at the time of SET Index moving within the range of 1,400-1,450. INVX expected the SET Index to reach 1,650-1,700 this year.
Mr. Sukit Udomsirikul, Managing Director, Chief Research Officer of InnovestX Securities, stated that the Thai stock market currently has a number of stocks with lower prices than their actual values, which creates an opportunity for long-term investors. The overall investment outlook in 1Q24 is estimated to be volatile. The US economy is expected to recess, making bond yields to still be a favor in investing.
Meanwhile, stock markets will be more interesting to invest in when the US Fed cuts the country’s interest rates. The Asia market is seen to be more interesting than other leading markets, such as the US and Europe. The Chinese economy will gradually recover from the continuously supporting monetary and financial policies. Thailand’s economic growth in 2024 will depend on every stimulus measure, including the Digital Wallet scheme and the Soft Power scheme.
Moreover, the SET Index is estimated to be at 1,650-1,700 points as the entering point is at 1,400-1,450. The recommended outstanding stocks in 2024 focus on quality and the recovery of business performance.
The list of the stocks are as follows:
Amata Corporation Public Company Limited (SET: AMATA) will benefit from the relocation and EEC. The target price is at THB 29.10.
Bangkok Bank Public Company Limited (SET: BBL) will benefit from lower provision. The target price is at THB 210.
Bangkok Expressway and Metro Public Company Limited (SET: BEM) is pushing for its big project in 2024. The target price is at THB 9.
Bangkok Dusit Medical Services Public Company Limited (SET: BDMS) sees the growth in patient support and will benefit from Wellness Tourism. The target price is at THB 35.
CP ALL Public Company Limited (SET: CPALL) will benefit from the Digital Wallet scheme and the recovery of tourism. The target price is at THB 74.
Central Retail Corporation Public Company Limited (SET: CRC) will benefit from the E-refund project and the recovery of tourism. The target price is at THB 48.
Gulf Energy Development Public Company Limited (SET: GULF) proceeds with a positive trend in the company’s profit, and the production power continuously grows. The target price is at THB 63.
PTT Oil and Retail Business Public Company Limited (SET: OR) will benefit from the Digital Wallet scheme, which will stimulate the sales of Lifestyle business. The target price is at THB 27.
The Siam Cement Public Company Limited (SET: SCC) has limited downsides and is waiting for the petrochemical industry to recover along with the cycle. The target price is at THB 357.
Lastly, SCG Packaging Public Company Limited (SET: SCGP) is entering the recovery year. The target price is at THB 51.
Mr. Sukit added that the overall investment outlook in 1Q24 has not been as positive as it should be. The Thai stock market is still highly volatile. The country’s economy is expected to grow by 3.2%, or 4.1% when including the Digital Wallet scheme. The growth is better than the 2023’s of 2.5%. Meanwhile, there is some pressure from the delay in the maturity date of debentures, which could cause commercial banks to increase provision, as the situation would cause a negative sentiment.
In addition, the fund flow is expected to return following the interest rate cut, and the volatility of the Thai stock market is expected to decrease in the second half of the year. The analyst recommends investing in value stocks that showed outperforming operating results but have undervalued prices than its fundamentals.
