Revealing 9 Prominent Stocks on mai with Strong Fundamentals - Anticipating a Turnaround

Brokers highlight 9 standout stocks on the mai market with solid fundamentals, anticipating a turnaround in Q4/63. TACC, MGT, AMA, and IIG are noted for their significant profit growth and business expansion stories, while BIZ, ATP30, TPCH, AU, and COMAN are expected to show clear turnaround in Q4/63, with limited downside risk as stock prices have not rebounded significantly.

*** Overall mai stocks' performance in Q3/63 remains sluggish

    Yuanta Securities (Thailand) Co., Ltd. reported in its daily analysis that the net profit for Q3/63 of listed companies on the mai stock exchange, accounting for about 60.80% of all companies, was 1,396 million baht, down 16.41% QoQ, but up 8.10% YoY. Revenue stood at 29,847 million baht, growing 8.09% QoQ but declining 2.20% YoY.

    Companies that showed strong net profit growth in Q3/63 both QoQ and YoY include ADB, AGE, AKP, AMA, COLOR, ETC, ICN, IIG, INSET, IP, JUBILE, KIAT, KUMWEL, PIMO, SAAM, SELIC, SONIC, STI, SUN, TNP, UBIS, XO, ZIGA.

    Meanwhile, companies that saw significant YoY net profit growth in Q3/63 include CHAYO, DOD, KWM, MBAX, MGT, MOONG, NPK, SEAOIL, TACC, TAKUNI, TPAC, ITEL.

     Conversely, companies that experienced a decline in net profit both QoQ and YoY in Q3/63 include AF, ALL, ASN, AUCT, ETE, GTB, PDG, PHOL, PLANET, SPVI, TPCH, TPLAS, TVD.

*** Sectors expected to recover in Q4: Food and Beverage
 
    Yuanta Securities assessed that based on Q3/63 performance, companies with profit growth both QoQ and YoY belong to the industrial goods sector or those used as raw materials for consumer-related products, aligning with the economic recovery and investment. For Q4/63, we anticipate that most companies' performance will still slow YoY, similar to companies in the SET, with agriculture, food, beverages, and service sectors expected to recover, supported by economic stimulus measures such as 'We Travel Together', 'Shop Dee Mee Khuen', and 'Kon La Khreung'.

*** mai stocks still lag significantly compared to SET

    In comparative analysis to assess the attractiveness of stocks on mai based on two variables:
    
    (1) Index Performance between mai:SET currently stands at 0.23 times. Although it has accelerated in the past two quarters, it remains low compared to the 10-quarter average of 0.30 times.
 
     (2) PBV Spread between mai-SET is at 0.17 times. Although it has turned positive for two consecutive quarters, it is still below the average of 0.90 times and close to the -1S.D. level of the 10-year average at -0.12 times. Therefore, while large stocks may recover quickly due to foreign capital inflows, the significant lag of mai compared to SET remains, and we ultimately assess that the high liquidity factor will support mai stocks to accelerate alongside SET.

*** Highlighting 9 standout stocks with strong fundamentals and potential for turnaround
    
    We continue to emphasize investment in mid-small cap stocks, but with strict screening based on fundamental criteria. Recommended companies include T.A.C. Consumer Public Company Limited (TACC), Business Alignment Public Company Limited (BIZ), Mega Chemical (Thailand) Public Company Limited (MGT), Ama Marine Public Company Limited (AMA), ATP 30 Public Company Limited (ATP30), TPC Power Holding Public Company Limited (TPCH), I&I Group Public Company Limited (IIG), Comanche International Public Company Limited (COMAN), and After You Public Company Limited (AU).

    We are placing more emphasis on the quality of profits and cash flow, as well as investment themes that align with the recovery of the tourism sector and domestic purchasing power. The strategic stock recommendations total 9: TACC, BIZ, MGT, AMA, ATP30, TPCH, IIG, COMAN, AU.

    Top Picks are TACC, MGT, AMA, and IIG, which continue to show strong profit growth and have stories of business expansion for ongoing growth. Meanwhile, we expect BIZ, ATP30, TPCH, AU, and COMAN to enter a clear turnaround mode in Q4/63, with limited downside risk in investments as stock prices have not rebounded significantly.