Reuters: Hot Stocks: STOCKS NEWS THAILAND-Srithai Superware hits 9-day high on strong Q3 outlook

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STOCKS NEWS THAILAND-Srithai Superware hits 9-day high on strong Q3 outlook Jul 20th 2012, 08:43 Fri Jul 20, 2012 4:43am EDT Srithai Superware Pcl surged more than 4 percent to a 9-day high on strong third quarter earnings outlook. Shares in the country's largest plastic tableware producer was up at 16.80 baht, having hit 17 baht earlier in the day, while the broader Thai index was down 0.31 percent. Country Group Securities rated the shares a 'buy' with target price of 20.50 baht on hopes that Srithai's profit growth will be supported by lower costs due to weaker petrochemical prices and higher margins from new plastic products. Srithai told Reuters on Friday that it expects better profit and sales in the third quarter despite only an "adequate" second quarter performance, helped by a hike in its products' prices and an increase in orders that should boost yearly sales above its target of 7.8 billion baht ($246.56 million). "Second quarter was only adequate due to the wage hike, and we couldn't fully raise our products' prices and there were many holidays around that time, so the results were just adequate", chairman Sanun Angubolkul said. "Third quarter would be better than the first quarter, both in terms of profit and sales, because of the price increase and full work capacity", he added. The company has not yet released its second quarter results, but had reported 117.32 million baht($3.71 million) net profit for the first quarter. For the company statement, click 1520 (0820 GMT) (Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com) ($1 = 31.6 Baht) ************************************************************ 10:43 STOCKS NEWS THAILAND-Krung Thai Bank climbs on better-than-expected quarterly net Krung Thai Bank climbed 1.88 percent to 16.30 baht, having hit 16.40 baht at one point, after it reported a better-than-expected 40 percent rise in quarterly net profit on Thursday thanks to higher net income and lower tax costs. (ID:nL3E8IB28A) Several brokers rated the shares a 'buy', on expectations that the better-than-expected quarterly profit should put the bank on course to continued growth. However, CIMB Securities kept its 'neutral' rating for Krung Thai with target price at 18 baht, citing risks of credit charge hike and leadership change as well as the overhang of an equity call. "We do not expect an extended rally in its share price... Its low coverage ratio leaves limited room for the unexpected and management may have to rectify this", CIMB Securities said. "The bank is a major lender to the steelmaker Sahaviriya Steel Industries, whose deterioration of credit standing could trigger a sudden hike in provisioning", the broker added. 1028 (0328 GMT) (Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com) Link this Share this Digg this Email Reprints

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