On Friday at 10:34 AM (Bangkok time), the share price of Tipco Asphalt Public Company Limited (SET: TASCO) rose by 3.93% or THB 0.70 to THB 18.50, with a trading value of THB 213.13 million.
Kasikorn Securities (KS) anticipates a favorable outlook for TASCO’s financial performance in 4Q24 and 2025. It is projected that the domestic asphalt market will show improved prospects due to the expedited release of government funds, notably the Department of Rural Roads (DRR) budget for 2024/25. This is forecasted to result in a potential 10% quarter-on-quarter growth in TASCO’s sales in 4Q24. With demand staying robust, prices per unit are expected to remain stable close to the levels recorded in 3Q24.
Furthermore, the anticipation of decreased oil prices is poised to enhance profit margins of the company. Towards the end of November and December, TASCO is expected to import a crude cargo monthly for refining and distribution, further bolstering its profit margin. As a result, Kasikorn Securities has revised up TASCO’s earnings projection, raising the target price to THB 21 per share.
