AUCT jumped 5.31% or 0.60 baht to 11.90 baht, trading value 39.55 million baht at 14.47 baht from an opening price of 11.40 baht, a high price of 12.00 baht, which is the highest price in 3 years, a low price of 11.30 baht, with the price continued an increase of 2.73% or 0.30 baht to close at 11.30 baht.
Krungsri Securities in its analysis of Saha Auction Public Company Limited (AUCT) shares said that profit from the main business is expected to reach a new high in the 4th quarter of 2023. We expect profit from the main business to be 104 million In the 4th quarter of 2023 ( +10% yoy, +11% qoq) because the seasonal peak period will cause revenue to increase to 355 million baht (+24% yoy, +9% qoq), while the GPM is expected both The group will be stable at approx. 50.5% from 50.2% in 3Q23 because it is supported by the number of vehicles being auctioned more.
The stock price is already reflecting the market’s expectation that 4Q23 results will be strong. We expect the share price to rise again in early March. This is supported by higher NPL numbers of financial institutions. (which means more cars will be available for auction.) Issue promising financial statements 2023. and announce dividend payments
It is considered that AUCT shares will be able to move up significantly again depending on events that will take place in the next two months (1) the 2023 earnings announcement (2) the reporting of NPL numbers for the 4th quarter. /66 and (3) Dividend declaration We still like AUCT because (1) its earnings are clearly likely to be strong and (2) its dividend yield is good.
Krungsri Securities maintains a “Buy” recommendation on AUCT and estimates the target price at 12.80 baht. The condition of AUCT is considered to remain positive because the company will benefit from increasing NPLs from financial institutions. In addition, it’ The number of cars auctioned off in The fell due to a weak economy and pressure on GPM, despite strong revenue growth. This will be a limiting factor on the upside for AUCT share prices in the short term.
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