Reuters: Hot Stocks: STOCKS NEWS THAILAND-Auto parts rise to 7-yr highs on strong sales

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STOCKS NEWS THAILAND-Auto parts rise to 7-yr highs on strong sales Jul 18th 2012, 04:22 Wed Jul 18, 2012 12:22am EDT Shares of auto parts makers climbed to seven-year highs, outperforming the broader stock market, as strong sales of new cars and trucks in the first six months and upbeat outlook for full year lifted investor confidence. For details see "Earnings growth momentum is set to continue in the second quarter driven by the normalization of auto production especially at Honda and the start of production for new car models," said broker Phillip Securities. The broker said it rated the sector 'overweight'. Thai Stanley Electric Pcl and Somboon Advance Technology Pcl were its top picks, with target prices of 210 baht and 32 baht, respectively. "Somboon Advance is seen as a laggard relative to its peers and Stanley is likely to benefit from resumption of production at Honda, its major client," it said. The auto parts subindex was up 1.7 percent at 468.55, its highest since March 2005, with Thai Stanley Electric up 3 percent at 208 baht and Somboon Advance Technology 1.7 percent higher at 29.25 baht. The broader stock market was down 0.42 percent. 1111 (0411 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ************************************************************ 09:18 STOCKS NEWS THAILAND: CIMB downgrades Advanced Info Service to underperform CIMB Research downgraded Thailand's biggest mobile phone operator Advanced Info Service Pcl ADVA.BK (AIS) to 'underperform' from 'neutral', reflecting a stretched valuation and concerns of rising costs related to 3G businesses. The broker said its stock target price was 175 baht ($5.55). AIS shares closed up 0.48 percent at 209 baht on Tuesday, climbing at one point to an intraday record high of 215 baht. "2013 earnings will disappoint due to 3G cost and benefit mismatches. We believe consensus estimates for 2013 EBITDA are too optimistic," the broker said in a report. "With its record-high share price, AIS is all set for a correction when it disappoints the market with below-view earnings in FY13. The share price is trading at 2SD above its 5-year average P/E and EV/EBITDA, indicating sizeable downside risk," it said. 0913 (0213 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ($1 = 31.555 baht) Link this Share this Digg this Email Reprints

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