Reuters: Hot Stocks: STOCKS NEWS THAILAND-Srithai Superware up on earnings hope

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STOCKS NEWS THAILAND-Srithai Superware up on earnings hope Jun 20th 2012, 06:00 Wed Jun 20, 2012 2:00am EDT Shares in Thailand's largest plastic tableware maker, Srithai Superware Pcl, gained as much as 8 percent amid hopes for high dividends and a potential strong earnings growth boosted by high margin products and expansion plans. At the mid-session break of 0530 GMT, Srithai shares were up 7.3 percent at 14.8 baht, climbing at one point to 14.9 baht, the highest since March 2000. The main SET index was up 0.12 percent. "The company has revamped its business to focus more on growing high margin products. That is good for earnings growth over the next two years," said broker Trinity Securities in a research note to clients. The broker rated the stock 'buy,' with a target price of 19.6 baht. It said the company's plan to set up production bases in countries with low labour costs such as Vietnam, also boded well for earnings outlook. The company was expected to post 2012 net profit of 409 million baht, up 45 percent, with dividend of 1.06 baht per share, the broker said. 1230 (0530 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ************************************************************ 11:41 STOCKS NEWS THAILAND: Auto-parts stocks up on solid May auto sales Shares in auto-parts companies pushed higher, bucking a broad market weakness, after upbeat vehicle sales data for May along with a recovery of the automotive sector hit by flooding last year. The auto-parts subindex .SETAU was up 0.8 percent, led by a 1.3 percent gain to 198.5 baht ($6.32) by Thai Stanley Electric Pcl STAN.BK and a 0.9 percent rise to 27.75 baht by Somboon Advance Technology Pcl SAT.BK. The benchmark SET index .SETI was down 0.28 percent. Thailand's sales of new cars and trucks in May surged to 115,943 units, up 108 percent on year, as automakers resumed production after severe floods while the government's incentives and new car models boosted sales, data showed. (Full Story) Broker Phillip Securities rated the sector 'overweight'. Somboon Advance, which sells parts for Kubota 6326.T, and Stanley, a parts supplier for Honda 7267.T, were among its top picks. "Growth momentum is likely to continue in the second quarter. Honda, which was hard hit by last year's floods, has resumed delivering ordered cars to its clients. The upcoming car model launches in the second half would also help spur consumer demand," it said in a report. "In the long run, capacity expansion of several big carmakers could be a key driver of the industry's long-term growth," it said. 1128 (0428 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ($1 = 31.4 baht) Link this Share this Digg this Email Reprints

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