Finansia Syrus Securities (FSS) stated that the share price of Thai Vegetable Oil Public Company Limited (TVO) declined -9% over the past month to an attractive level of 11x 2021E PE. Therefore, FSS expected TVO to offer a dividend yield of 4.4 – 4.7% in the first half of this year (estimated full-year yield of 7.6%), marking the highest range among agro & food sector.
Despite the fact that the soybean price has passed its peak in the short term, the share price has already reflected the aforementioned issue, and the impact of the weak baht is limited due to the company’s effective management. Profitability is still expected to climb 41% in 2021, compared to the same period last year. Maintain target price of 38 baht per share with an upgrade to “Buy“.