Thai Tap Shares Gain Most in More Than 10 Months on Valuation
Thai Tap Water Supply Pcl, the nation’s biggest non-state water supplier, gained the most in 2 1/2 months in Bangkok trading on speculation that the recent declines were overdone relative to projected earnings.
The shares jumped 4.3 percent to 6.10 baht as of 11:49 a.m. local time, set for the steepest climb since Sept. 2. The stock, which lost 16 percent in the past nine days, was the third-best performer in the SET50 Index, a measure of the 50 largest publicly traded companies.
“It’s time for the stock to rebound as the share price is very attractive after the recent decline,” said Jitra Amorthum, the head of research at Finansia Syrus Securities Pcl in Bangkok, who has a “buy” rating on the stock. “Earnings will grow significantly in 2011 on increased production and selling prices.”
Thai Tap’s shares had slid after reporting third-quarter profit rose less than estimated by analysts. Net income in the three months ended Sept. 30 climbed 5 percent to 508.8 million baht ($17.2 million) , Thai Tap said on Nov. 8. That was lower than the 550.4 million baht average estimate of seven analysts surveyed by Bloomberg.
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