On Friday at 12:03 PM (Bangkok time), the share price of The Siam Cement Public Company Limited (SET: SCC) soared by 6.17% or THB 9.50 to THB 163.50, with a trading value of THB 924.38 million.
Kasikorn Securities (KS) stated that the rise in SCC share price came following earlier acquisitions of the stock by the Vayupak Fund and further investments by mutual funds. Additionally, the rebound in Dow Jones Futures also resulted in regional stock markets adjusting upwards, supporting market sentiment.
Meanwhile, the market anticipates an improvement in the cement and construction materials business in Thailand, in tandem with the gradually recovering economy. This is aided by government budgets pushing forward various state construction projects after delays in budgets over the past 1-2 years, along with governmental measures to stimulate economic recovery.
KS noted that SCC shares had previously dropped to a low of 124.50 baht per share, bringing the Price per Book Value (P/BV) down to 0.4x, indicating an attractive valuation, considering a ‘Hold’ rating previously given with a target price at 169 baht per share. Such a circumstance provides a substantial upside potential for the stock, while the company’s commitment to maintaining a dividend payout of 5.00 baht further enhances its appeal.
