Time flies! The Thai stock market has already reached the end of the first month of 2018. The market trend remains bullish, as observed from the New Year period until now (January 3-26, 2018), with an increase of over 2.8%. The main buying force continues to come from domestic institutions, with a net trading value of 5,171.98 million baht and securities accounts at 3,585.25 million baht. Meanwhile, foreign investors and retail investors are still hesitant, gradually selling with net values of -718.63 million baht and -8,038.60 million baht, respectively.


            Despite the upward trend in the stock market, there are several stocks that have not moved in price at all, with some even declining. This could be due to business or macroeconomic factors. Monitoring the stocks held in one's portfolio remains a task that investors must continuously undertake. TerraBKK has observed the price movements of 10 companies that have performed outstandingly in the first month of 2018 (excluding newly listed IPO stocks). Most of these are in the finance and securities sector, petrochemicals and chemicals, energy and utilities, etc. The details are as follows:


           AEONTS - AEON Thana Sinsap (Thailand) Public Company Limited increased by 40.1% in January due to rising revenue figures from credit cards, personal loans, and recoveries from bad debts, along with improved financial costs and asset quality. The stock price also reached an all-time high of 186 baht per share (January 16, 2018).

           NPP - Nippon Pack (Thailand) Public Company Limited rose by 38.9% in January due to positive news about increasing registered capital to 2.06 billion baht (up from 1.66 billion baht) by issuing 400 million new shares allocated to Asia Alpha Equity Fund 1 (a fund registered in Singapore), which will hold 24.9% of the registered capital. The funds raised will be used to expand the company's future business, both in terms of business expansion and partnerships.


          VNT - Vinythai Public Company Limited increased by 38.9% in January, benefiting from higher average selling prices, especially for PVC and caustic soda products, due to a decrease in export volumes from China. Recently, the price of PVC pellets rose by 2.2%, positively impacting VNT, with the stock price reaching a new high of 30.75 baht per share (January 25, 2018).

          KTC - Krungthai Card Public Company Limited rose by 29.5% in January due to better-than-expected 4Q17 performance. Despite the impact of a reduction in credit card interest rates (from 20% to 18%), credit card usage continued to grow, along with increased fee income and reduced marketing expenses. The stock recently reached an all-time high of 247 baht per share (January 25, 2018).

          EA - Energy Absolute Public Company Limited increased by 27.5% in January due to a strategy to create a new s-curve in energy storage business, expected to begin its first phase in Q1/62. It is believed that in 10 years, EA may have the opportunity to become a battery supplier for electric vehicle manufacturers, which is certainly a positive factor pushing the stock price to an all-time high of 71.25 baht per share (January 15, 2018).


          GIFT - Grattitude Infinite Public Company Limited rose by 24.5% in January due to positive news indicating it will be a recovery stock as purchasing power begins to return, along with expected growth in OEM products.

         BAY - Bank of Ayudhya Public Company Limited rose by 20.6% in January due to a net profit increase of 8.4% year-on-year, driven by loan growth, non-interest income, and fees, with a target for loan growth of 6-8% this year in line with the country's economic trends.


          JMART - J Mart Public Company Limited rose by 20.4% in January, with news of fundraising through the digital token "JFin" Coin for the first time (Initial Coin Offering: ICO) worth 100 million digital tokens in March 2018, expected to raise around 660 million baht. However, since digital currency is an electronic data unit and not a legally recognized currency in Thailand, relevant government agencies are still considering appropriate regulations for digital assets.


          HTC - Haadthip Public Company Limited rose by 20.4% in January, benefiting from news of sugar price deregulation, initially expected to reduce sugar prices in Thailand by 2-3 baht per kilogram, positively impacting the cost for beverage stocks.


          PRINC - Principal Capital Public Company Limited rose by 19% in January due to the acquisition of Piyamin Hospital in Samut Prakan and three Piyamin clinics in Bangkok, enhancing competitiveness and providing a channel for patient referrals, which will increase future business revenue.

          Finally, TerraBKK emphasizes that the significant price movements of stocks occurring within a single month do not guarantee that stock prices will continue to rise. It is crucial for investors to focus on studying company data to assess the reasonableness of stock prices in relation to actual business growth. Otherwise, you might unknowingly become a moth drawn to the flame. --- TerraBKK

Article by: TerraBKK Investment Tips

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