Stocks in Focus on November 13, 2020: MINT and RS

Stocks in Focus on November 13, 2020: MINT (KGI Securities TP at ฿32.00/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 November 13, 2020.

 

KGI Securities has given an “Outperform” rating on Minor International Public Company Limited (MINT) with a target price at ฿32.00/share.

KGI stated that the result of Bt4.8bn normalized loss in 3Q20, compared to a Bt7.2bn normalized loss in 2Q20 was better than KGI and the market’s expectation by 22% and 12%, respectively. After easing of COVID-19 restrictions since 2Q20, both hotel and restaurant businesses have seen paths to recovery across destinations in 3Q20.

Although the pace of earnings recovery in 4Q20F may be affected by a second wave of COVID-19 infections in European countries, KGI reiterated rating of Outperform on the back of progress on a vaccine and as the short-term recovery hiccups should not yield a significant impact on the longer-term earnings momentum.

 

KGI Securities has given an “Outperform” rating on RS Public Company Limited (RS) with a target price at ฿24.60/share.

RS reported a 3Q20 net profit of Bt131mn (+20% QoQ, +41% YoY), in line with KGI’s forecast and the market consensus. The strong growth was driven by both commerce revenue, which hit a record high, and increased media revenue. The 9M20 earnings accounted for 73% of KGI’s full-year forecast while growth is expected to continue in 4Q20  2021.

KGI maintained forecasts at Bt585mn (+61% YoY) in 2020F and Bt717mn (+23% YoY) in 2021F. Thus, KGI reiterated a rating of Outperform with a target price of Bt24.60 (PER 33.4x, +1.0 S.D) backed by a longer-term bright outlook with CAGR of 11% for 2020 – 2021.

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