Stocks in Focus on October 27, 2020: RBF and MAJOR

Stocks in Focus on October 27, 2020: RBF (Maybank Kim Eng TP at ฿11.50/share) and MAJOR (KGI Securities TP at ฿16.40/share).

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on October 27, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on R&B Food Supply Public Company Limited (RBF) with a target price at ฿11.50/share.

Maybank expected 3Q20 earnings to strongly rebound to THB129m, (+22% YoY, +19% QoQ) due to the company’s resilience to Covid-19, resulting in limited impact to revenue and fast recovery.

While profit margins tend to expand, supported by a favourable product mix and the change of raw material sources. Maybank stated that the cost control is still doing well as planned, while earnings are expected to keep healthy and likely to make an all time high in 4Q20, driven by the trend of increasing health drink products, accelerated domestic and international sales and additional cost savings from factories in Indonesia.

 

KGI Securities has given an “Outperform” rating on Major Cineplex Group Public Company Limited (MAJOR) with a target price at ฿16.40/share.

KGI revamped its 2020 – 2021 forecasts for MAJOR to fine-tune for the expected 9M20F earnings and more positive outlook for 4Q20 – 2021. After the revisions, KGI’s core earnings forecasts are raised 10% to a loss of Bt760mn in 2020 and 7% to a core profit of Bt719mn in 2021.

KIG upgraded MAJOR to Outperform, from Neutral, backed by i) earnings bottoming out in 2Q20, ii) strong recovery in 2021 and iii) cheap valuation compared to regional peers. Based on the new forecast, the 2021 target price is revised up to Bt16.40 (PER 20.4x, -0.5 S.D), from Bt15.10.