As we enter the second half of 2020, Covid-19 remains a serious challenge worldwide, with more than 12.3 million cases and deaths exceeding 550,000. In our current investment strategy, we recommend stocks focused on the domestic economy with robust business portfolios that stand to gain from easing of the lockdown and domestic travel stimulus. We believe the company has passed its lowest point and is set for a big jump in profit in the second half. Although domestic demand for energy drinks has softened, this is being offset by strong demand in the CLMV (Cambodia, Laos, Myanmar and Vietnam) markets as well as the company's new functional drink products. Another key factor for SCC is the resumption of government megaprojects in the second half; demand for construction materials should improve significantly, providing SCC with more substantial benefits in the second half of 2020 compared with the first half.

Source: Bangkok Post July 14, 2020 00:00 UTC