Maybank Raises EPG’s TP to ฿13.50 on Strong Earnings Forecast for 2021-22

Maybank Kim Eng (Maybank) has given a “BUY” recommendation on Eastern Polymer Group Public Company Limited (EPG) with an increased target price of 13.50 baht per share, emphasizing strong outlook for 2021-22, owing to the three core businesses – AeroFlex, AeroKlas and EPP. 


EPG saw 4Q20-21 profit slowed down, a 7% below forecast expected. However, for the whole 2020-21, it achieved a remarkable growth of 1.219 billion baht (+22% YoY) with a strong outlook for 2021-22. 

Sales growth target was set at 11 billion baht, (+12-15%) and gross margin 29% -32% vs 31.1% the previous year. Three businesses should continue growing well. 1) AeroFlex insulation business aims to grow 10-12% and gross margin 41-43%, close to the previous year. 2) Auto parts and accessories (AeroKlas) eyes 20-23% growth with a gross margin of 30-33%, similar to the previous year and 3) the plastic packaging (EPP) business is aiming for 5-8% growth and a 19-21% gross margin vs 18.6% the previous year. EPG has gradually increased prices to offset rising petrochemical costs.

Maybank maintained the forecast: Sales for 2021-22 are 10.749 billion baht, (+12.2%), a new record profit of 1.462 billion baht, (+20%).

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