On Wednesday at 10:18 AM (Bangkok time), the share price of Tipco Asphalt Public Company Limited (SET: TASCO) soared by 3.53% or THB 0.60 to THB 17.60, with a trading value of THB 172.82 million.
Finansia Syrus Securities (FSS) highlighted the ongoing need to monitor the flood situation in Northern-Central Thailand. The approval of approximately THB 3 billion budget by the cabinet for the recovery of affected areas has generated a positive outlook for TASCO, as the anticipated increase in asphalt demand for road restoration projects is expected to drive the company’s growth.
TASCO foresees a more robust profit outlook for the second half of 2024 compared to the first half, driven by the accelerated disbursement of the 2024 budget in the third quarter. Anticipations are high for the on-time execution of the 2025 budget, contrasting the delays experienced this year. Additionally, the decline in crude oil prices has positively impacted the company’s cost dynamics.
The analyst gave a ‘Speculative-Buy’ recommendation for TASCO with an IAA consensus target price of THB 18.50 per share.
