Asia Plus Securities has raised its forecast for listed company earnings growth to 18% for 2011 following stronger-than-expected first-quarter results.
The brokerage, which had previously had a 12% target for earnings per share (EPS) growth, also raised its year-end target for the Stock Exchange of Thailand by 10-15% from 1,053 points previously.
CEO Kongkiat Opaswongkarn said the second quarter typically represented a lull for the Thai stock market, with trading likely to pick up again in August and September as foreign investors resume activity after the summer break.
“In addition to cyclical factors, the market is also being influenced by the decline in commodities prices for metals such as silver and gold, as well as profit-taking by large foreign hedge funds,” he said.
Asia Plus expects its revenue to expand by 10-15% this year. It reported first-quarter net profit of 189.91 million baht, up 72% from the same period last year. Revenue rose 63% year-on-year to 601.49 million baht, driven by gains in brokerage and advisory fees and trading gains.
Dr Kongkiat said ASP had 23 investment banking mandates in hand, including eight initial public offerings and six merger and acquisition deals.
The company remained committed to its strategy of diversifying its business lines. ASP currently has six main businesses: brokerage, investment, asset management, investment banking, equity derivatives and global investment.
“Revenues from trading commissions are expected to decline over the next five years, in line with global trends. To survive, the company must diversify its revenue base more,” he said.
ASP shares closed yesterday on the SET of Thailand at 2.76 baht, unchanged, in trade worth 10.6 million baht.
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About the author
Writer: Darana Chudasri
Position: Business Reporter