Earnings rise drives bullish outlook on AP

Somluck Srimalee

The NAtion

They believe the company's revenues and net profit could rise 10 per cent to 20 per cent this year and the next.

The brokers include Kim Eng Securities (Thailand), Kiatnakin Securities, Globlex Securities, Thanachart Securities and Phillip Securities (Thailand), Adkinson Securities and Kasikorn Securities.

Globlex Securities believes the company's revenue and net profit could grow 15 per cent and 35 per cent, respectively, this year.

Globlex recommends a "Buy" with a price target of Bt10.30 per share.

Meanwhile, Kim Eng Securities (Thailand) and Kiatnakin Securities, who recommends a "Buy on Weakness", said the company's revenues in the first quarter are expected to be lower than the same period last year. This is because both brokers expect delays in the transfer of residential properties to the customer subsequent to the government's tax package becoming effective March 30. As a result, AP's customers are likely to defer transfer to the second quarter.

The share price has risen 53 per cent this year. Thus, Kim Eng Securities (Thailand) and Kiatnakin Securities recommend a "Buy on Weakness" with a target price between Bt8.50 and Bt8.80 per share.