The share price of Kerry Express (Thailand) Public Company Limited (KEX) rose ฿1.75/share or 4.58% to ฿40.00/share as of 11:43 local time in Thailand, with a trading value of 258 million baht.
KGI Securities (KGI) expects KEX to report a 2Q21 net profit of 317 million baht (+4% QoQ, -17% YoY). Growth QoQ would be driven by increased revenue while the decline YoY would be due to a decrease in revenue from the high base in 2Q20 when there was an abnormal volume of delivered parcels. Though 1H21 earnings would account for 44% of KGI’s full-year forecast, KGI is maintaining its forecasts at 1.4 billion baht for 2021 and 1.6 billion baht for 2022 as earnings in 2H21 should beat 1H21 on increased demand for Courier Express Parcels (CEP) during the outbreak and seasonality. KGI reiterates a rating of Outperform on KEX with a 2022 target price of 56.00 baht.