Shares of Noble Development PCL (NOBLE), a leading property developer, rose by 3 per cent on Wednesday morning trade after closing with a surge of 8.33 per cent on Tuesday as a response to the company’s big lot transactions.
The price reached 13.20 baht high or 10 per cent on Tuesday with a 200 per cent increase in trading volume from the five previous days.
Local media reported there was a trading of three big lots of Noble’s shares at an average price of 11.60 baht, which is 3 per cent less than the previous closing price of 12 baht – a total value of 232 million baht.
Thongchai Busrapan, the Noble chairman, and Frank Fung Kuen Leung, the vice-chairman, are each big lot sellers of 10 million shares.
The main buyers are Nares Ngam-Apichon and Sompong Chonkadeedumrongkul, who acquired more than 10 million shares.
Big lot transactions
According to the company, the big lot offering is set to encourage advisors in the market to promote Noble’s stocks which currently have only 2.5x P/E.
“Investors’ interest in Noble shares is a result of the company’s strong growth prospects following the change in business structure and major shareholders,” said Arttavit Chalermsaphayakorn, the Noble Chief Financial Officer.
Another positive sentiment toward Noble’s shares is their strong second-quarter performance.
The company had a total revenue of 1.8 billion baht, up 122 per cent year-on-year. Meanwhile, the net profit was 303 million baht, an increase of 84.5 per cent, in line with the company’s project transfers.
Analysts’ views
Padon Vannarat, an analyst from Yuanta Securities, said the company’s strength was its affordable price which is four times lower based on P/E ratio of 2021 and six times lower compared to the average price in the industry.
Yuanta Securities estimates a full-year profit of 1.8 billion baht. The analysts believe earnings are expected to recover from the improving economy after the second-quarter low.
However, the current travel restriction is the issue as the projects bring in about 15-25 per cent of foreign customers, said Yuanta analyst.
Yuanta maintains a ‘Buy’ rating on NOBLE till the end of 2020 at the target price of 16.30 baht per share.
NOBLE shares were at 13.30 baht per share on Wednesday during the intermission break, an increase of 0.30 baht or +3.31 per cent, with the transaction value at 81.3 million baht.
