In today’s briefing:
- SET50 Index Rebalance: Four Changes; Cal Comp🚀
- Berli Jucker (BJC TB) – Big C on the Turn
- CP AXTRA (CPAXTRA TB) – Governance Concerns over Property Investment
SET50 Index Rebalance: Four Changes; Cal Comp🚀
- There will be 4 changes for the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) at the close on 30 December.
- All changes are in line with our forecasts and there appears to be positioning in all the stocks.
- Cal Comp Electronics Thailand (CCET TB) will have the largest passive buying a percentage of free float and could be the stock to watch.
Berli Jucker (BJC TB) – Big C on the Turn
- Berli Jucker (BJC TB) has started to see better performance from Big C SSSG from 3Q2024, with strong performance in October and November, with an expected strong finish to FY2024.
- The company continues to focus on expanding its fresh food offering, introducing more private labels into its modern retail segment, and using AI to improve logistics performance.
- Berli Jucker‘s packaging business is benefitting from raw material lower input costs coupled with active hedging as well as a switch to Aluminium cans from PET. Valuations remain attractive.
CP AXTRA (CPAXTRA TB) – Governance Concerns over Property Investment
- CP Axtra (CPAXT TB) has seen a heavy impact on its share price following an announcement it would invest THB12-15bn in a mixed-use property project with a related party.
- Investing in malls is part of CP Axtra’s business although its major focus is on its retail business which includes wholesale under Makro and its Lotus hypermarket and supermarket businesses.
- The sell-off looks overdone but has been clouded by the sale of shares in parent CP ALL by its vice-chairman ahead of the announcement raising further governance concerns.
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