(Fixes story link in paragraph 3)
Shares in Bangkok’s skytrain operator BTS Group Holdings Pcl surged 5.6 percent to their h ighest in 10 days at 5.65 baht, while brokers expect its second-quarter earnings to gain from the recent disposal of its real estate subsidiary.
BTS said on Wednesday that Bangkok Mass Transit System Public Co Ltd (BTSC), a direct subsidiary in which BTS holds a 96.44 percent stake, had disposed of its entire investment in its real estate subsidiary Kamala Beach Resort & Hotel Management Co Ltd.
BTSC received a total of 1.64 billion baht ($53.02 million) from sale.
DBS Vickers Securities rated the shares at ‘buy’ with a target price of 6.24 baht, saying that the sale will boost the company’s second-quarter net profit.
“(The deal) is positive. We expect BTS to gain a net profit of 298 million baht in its combined budget due to the 96.44 percent stake in BTSC,” DBS said in a research note.
Thanachart Securities also rated BTS at ‘buy’ with a target price of 6.30 baht.
“We still like BTS as a long-term investment due to its strong cash flow from its skytrain and media businesses. Meanwhile, our concerns over its real estate business had eased since the company decided to slow down its investment,” Thanachart said.
At 0346 GMT, BTS shares were up 4.67 percent at 5.60 baht, while the main Thai index rose 0.07 percent. (Reporting by Sinsiri Tiwutanond in Bangkok; email@example.com) ($1 = 30.93 Baht)