DBS Vickers Securities (DBSVS) anticipates the SET Index to move between 1,590 and 1,610 points this week (June 28–July 2), citing five key highlights to monitor: 1) US bond yields, 2) 2Q21F earnings previews, 3) the OPEC+ meeting on July 1, 4) US employment data, and 5) the progress of license for growing hemp-cannabis.
Following the partial lockdown announced for 30 days in 10 provinces, including Bangkok, starting June 28, DBSVS recommends investing in small-cap stocks with the best value and potential growth.
The Royal Gazette on Saturday (June 26) night published a statement indicating a lockdown restriction in Bangkok and five surrounding provinces, including Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon and Nakhon Pathom to combat the coronavirus (Covid-19) as the new wave that has been tormenting the country since April was more contagious than the previous one.
The restriction, which will be implemented for 30 days starting June 28, will allow restaurants to be only available for takeaway, while community malls and department stores will close at 9 p.m.
Besides that, the political uncertainty continues to put pressure on Thailand’s market and investment. Thus DBSVS has highlighted 3 small-cap stocks for investing.
NRF : “BUY” recommendation with a target price of ฿12.00/share, Upside 19%
In 2021-2022, NR Instant Produce Public Company Limited (NRF) is predicted to have a strong profits outlook. DBSVS mentioned its inclusion in SET100, the December 2020 acquisition of City Food, and the cooperation to operate hemp and terpene businesses as key drivers. Net profit is expected to increase by 27% and 50% in 2021-2021, respectively.
NSL : “BUY” recommendation with a target price of ฿18.95/share, Upside 27%
DBSVS forecasts NSL Foods Public Company Limited (NSL)’s net income to expand 60% in 2021, thanks to an improving sales volume, lower finance costs and higher margin. The company expects revenue this year to reach 3,500 million baht, up 19.% YoY.
SONIC : “BUY” recommendation with a target price of ฿5.00/share, Upside 18%
DBSVS remains positive on Sonic Interfreight Public Company Limited (SONIC) based on its excellent projection for 2021. Main catalysts are 1) revenue surged 456%YoY, 33%QoQ to 604 million baht as a result of rising freight rate and GPM increased to 18% and 2) effective control of selling and administrative expenses.