Shares of Rojana Industrial Park (ROJNA), an industrial estate developer, jumped more than 15 per cent on Friday, based on bullish business sentiment around the electric-vehicle (EV) trend while analysts stayed cautious on the uncertainties.
ROJNA rose by 16.10 per cent to 8.65 baht before falling back to 8.40 baht, an increase of 12.75 per cent, for the mid-day break. It accounted for a transaction value of 723.74 million baht, the fifth most traded stock of the day.
The government’s policy to promote businesses related to the electric-vehicle trend will likely benefit the firm, local media Thunhoon reported Friday before the trading began.
In April, ROJNA signed a joint venture for electric-vehicle battery production with US electric-vehicle maker EVLOMO to set up a battery-cell plant with a capacity of 8 gigawatt hours. It expected the plant to initially start operation by this year-end.
“Now the company is still studying the feasibility. But it will be an opportunity to generate income in the future” said Amara Charoengitwattanagun, the company’s director.
However, analysts at Krungsri Securities said that ROJNA’s second-quarter earnings will depend on land transfers, which are still facing impact from the Covid-19 pandemic. “We expect flat revenue contributions from power and infrastructure operations,” the analysts added.
Krungsri gave a target price of ROJNA at 8 baht, forecasting the company to post 707 million baht of core profit for this year, down 17 per cent from a year earlier.
“This year, we have to admit that land sales are delayed due to travel bans,” said Amara.
The company had a land backlog of around 700 rai waiting to transfer in the second half which would be boosted by vaccination progress, she said.
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