Reuters: Hot Stocks: STOCKS NEWS THAILAND-Somboon Advance near 2-week high after sales guidance

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STOCKS NEWS THAILAND-Somboon Advance near 2-week high after sales guidance Aug 29th 2012, 05:20 Wed Aug 29, 2012 1:20am EDT Shares of auto parts manufacturer Somboon Advance Technology Pcl climbed to their highest in almost two weeks, outperforming the sector, following positive management guidance on second-half sales. Somboon shares were up 0.9 percent at 29.5 baht, having hit 30 baht earlier in the day, versus a 0.27 percent gain of the auto parts subindex. The upbeat industry outlook has sent the stock 41 percent higher so far this year, while the industry subindex is up 43 percent. The management targets second-half revenue to increase 17-18 percent from the first-half and the full-year 2012 revenue to rise 48 percent to 9.5 billion baht, in line with industry expectations of 44-51 percent growth in 2012 local auto production, broker KGi Securities said in a report. It rated the stock 'outperform', with a 2013 target price of 38 baht, based on 12 times forward price to earnings. "Local auto production is expected to continue to grow next year, but the growth rate is expected to turn back to its organic growth rate of 8-10 percent from 44-51 percent this year. The first-time car buyer scheme and recovery in consumer confidence would be key drivers next year," it said. Nine out of 10 analysts tracking the company rated the stock a 'buy' or a 'strong buy', with one having a 'hold' rating, according to Thomson Reuters Starmine. 1202 (0502 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ************************************************************ 11:15 STOCKS NEWS THAILAND-Bualuang downgrades Berli Jucker to 'sell' Bualuang Securities downgraded commercial conglomerate Berli Jucker Pcl BJC.BK to 'sell' from 'hold', citing its rich valuation and a modest projected earnings growth over the next three years. The broker has a target price of 39.5 baht on the stock. Berli shares are up 2.19 percent at 46.75 baht. That compares with a 0.4 percent gain of the commerce subindex .SETC and a 0.31 percent rise of the broader SET index .SETI. The stock traded at 29.8 times its price to 2012 earnings and 25.7 times for 2013, relatively high for the sector, the broker said. It forecast a modest compound annual growth rate (CAGR) of 16 percent for three years ending 2015. "BJC's operation is concentrated in the mid- to up-stream levels of the supply chain, which in our view deserves a lower multiple than downstream firms, as bargaining power at those levels is weaker both as a vendor and as a buyer," it said. "Although BJC is moving downstream, we don't think it is yet appropriate to price it as a downstream play," it said. 1059 (0359 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) Link this Share this Digg this Email Reprints

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