TASCO accelerates budget disbursement Low profitability, high dividends 7.8% – Stock Dimensions


Stock Dimensions-Tasco Speeding up the engine after the government accelerated the disbursement of the 2024 budget in preparation for 2025 scheduled for next October. Brokers are flocking to buy with a target of 20 baht.

TASCO or Tipco Asphalt Public Company Limited, a subsidiary of Maybank Securities (Thailand), said that the investment budget for the Highways and Rural Roads Department, after a delay of 7 months, has recently been purchased. And the disbursement will be accelerated from the end of May. 67 and supported by the 68th fiscal year which will start in October. This 67

Sales recover as government speeds up budget disbursements

This makes sales volume expected to grow by 7% this year. Sales are expected to reach 32 billion baht, up 3%, and ordinary earnings are expected to reach 2.6 billion baht, up 8%. The stock is still priced at an Overweight valuation of 10.3x P/E for 2024 and has a high dividend yield of 7.8%, giving a target price of 20 baht.

Brokers flock to buy, target 20 baht

TISCO Securities expects 2Q24 organic profit to reach 208 million baht, down 73% YoY due to 24% decline in asphalt sales, but expects to see a sharp improvement in domestic demand during this period in the second half of the year due to the acceleration of budget disbursement, we maintain our “buy” recommendation on TASCO at a reasonable value of 18.90 baht.

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