The share price of Central Plaza Hotel Public Company Limited (CENTEL) rose ฿1.75/share or 5.51% to ฿33.50/share as of 12:04 local time in Thailand, with a trading value of 231 million baht.
KTBST Securities has given a “BUY” recommendation on CENTEL with a target price of ฿40.00/share. KTBST was positive about the company’s guidance at an analyst meeting yesterday as the hotel business, overall, is expected to be back on track in 2H21 thanks to a faster-than-expected vaccine rollout and borders reopening both in Thailand and Maldives. While the food business is still on the growth path as Covid-19 situation improves.
KTBST foresaw CENTEL this year to remain with a loss of 928 million baht, but better than last year. However, revenue in 1Q21 will increase QoQ, but normal loss would surge QoQ due to a new wave of Covid-19. KTBST saw it as a short-term impact and CENTEL will return to profitability in 2022.