Mixed outlook for Sansiri

Phillip Securities (Thailand) and Siam City Securities, however, recommend "sell" for the stock at a target price of between Bt2.10 and Bt2.20 per share.

Their analyses, posted on May 21, can be seen at www.settrade.com.

According to research by Asia Plus Securities, Sansiri's gross margin in the second quarter should see significant improvement over the first quarter, which saw the launch of marketing campaigns for the Condo One and My Condo projects. As a result of these campaigns, the company's gross and net profit margins in the first quarter stood at 26 per cent and 4 per cent, respectively.

Asia Plus believes the pressure on the firm's results from the projects will decline in the second quarter, however.

Its "buy" recommendation is based on Sansiri's price-to-earnings ratio, which is lower than three times, and its share price, which is lower than the book value of Bt6 per share.

Sansiri's shares are currently trading at between Bt2.40 and Bt2.50.