Skyrocketing Profits: Krungsri’s Top 11 Stock Picks to Defy the Strong Baht and Send Airline Stocks Soaring

Strategy team Krungsri Securities Company Limited or KSS Publish an analysis of the stocks that have benefited from the strongest strength of the baht during the last year and 8 months, most recently at 32.9 baht / dollar, with a strength of about 4 baht from the end of the 2nd quarter of 2024, or about 10 % qtd, as a result of 1. the rate differential US-Thai interest rates tend to narrow 2. Capital Inflow 3. The domestic economy is showing signs of recovery. Clearly after politics By evaluating the trend of the baht, there is a chance of continuing to strengthen. The important technical support level is 32.55 / 32.186 baht / dollar, resistance level is 33.17 / 33.34 baht.

For every 1 baht that the baht strengthens, the group with the most positive profit side is the aviation group. AAV Every 1 baht, Upside 1 billion baht (54% of 2024 profit)

Followed by the power plant group (BGRIM increased by around 13%, EGCO increased by around 8%, GULF a GPSC increasing by around 3-4% respectively)

Agricultural group TWO Increase by about 3%

Mid/Small Cap Stocks that focus on imports from abroad are: MOSHI (Import 55% of cost) KCG (50%) UNTIL (70%), SABINA (56%)

Overall, every company, every 1% of the currency change has an impact on the market profit in 2024, increasing by around 1-1.5%.

The groups affected by the strengthening baht are the export, parts, and agriculture groups with disadvantages of -2.9%, -1.3%, respectively.

KSS recommends investment strategies The direction of the baht tends to strengthen. Evaluated as positive psychology for Fund Flow and positive for investment in the 4th quarter of 2024, maintaining the index target at the end of 2024 at a level of 1,540 points Recommend investing in stocks to benefit from the strengthening baht. and benefiting from the downward trend in interest rates, the Domestic playground

-The power of plant group emphasizes GULF (Max Consensus target price at 68 baht), benefiting from falling interest rates. and the baht is strengthening and the main stocks benefiting from the Data Center trend

-Airline group emphasizes AAV (Target price 2.82 baht) which benefits the most from the strengthening baht and is supported by falling crude oil prices)

-An agricultural group emphasizes TWO (Target price 23.2 baht) In the short term, there are positive factors of soybean price trend starting to return to an upward trend. Outlook for 3Q24: Normal profit is expected to recover from last year. Expect sales to increase from the previous quarter.

– Small middle group

MOSHI (Target price 64 baht) Import 55% of cost Every 1% of changes in currency value will affect profit in 2024, increasing by about 1.5%. Growth components include growth of existing branches and aggressive opening of branches. It is a retail store with rapid revenue growth of 20% in the short term and 3Q24 profits are forecast to return to excellent growth from last year. and last quarter

UNTIL (Target price 21 baht) (import 70% of cost) and is a stock in the Discount Pricing group PER of 14 times.

YOU (Target price 22 baht) (Benefits from exports in the form of baht And the import side of the leavening agent is in the form of US dollars. and indirectly benefit from lower oil prices, pushing packaging prices to adjust down as a result of positive operating results Combined with a trend for 3Q24 that is better than the original market forecast Core profit is expected to grow from the previous year and last quarter