Stocks in Focus on October 12, 2020: SABINA and RS

Stocks in Focus on October 12, 2020: SABINA (Maybank Kim Eng TP at ฿24.30/share) and RS (KGI Securities TP at ฿24.60/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on October 12, 2020.

 

Maybank Kin Eng has given a “BUY” recommendation on Sabina Public Company Limited (SABINA) with a target price at ฿24.30/share.

Maybank stated that SABINA’s 3Q20 earnings are forecast to grow +41% QoQ and hit the year’s peak in 4Q20. Profitability of the company continues to expand with expected dividend yield of 4-5% pa. The share is traded at PER21 of 19x, lower than the average of 23x.

 

KGI Securities has upgraded RS Public Company Limited (RS) from “Neutral” to “BUY” with an upgraded target price at ฿24.30/share.

KGI estimated RSs 3Q20F net profit at Bt125mn (+15% QoQ, +36% YoY). Growth QoQ should be driven by increased revenue from all segments while growth YoY should be boosted by increased revenue from the commerce segment and a better gross margin. To fine-tune for the anticipated impressive earnings growth in 9M20F, KGI raised its net profit forecasts by 7% to Bt585mn in 2020 and 24% to Bt717mn in 2021.

Based on KGI’s new forecast and raising PER from 30.9x (average of commerce sector) to 33.4x (+1.0 S.D), the target price for 2021 is now Bt24.60, from Bt18.50.