Maybank Kim Eng has given a “BUY” recommendation on Jubilee Enterprise Public Company Limited (JUBILE) with an increase in target price to ฿27.90/share, emphasizing strong online sales and better outlook from the government’s pandemic control that was not as harsh as in 2020.
Maybank stated that JUBILE has proven in 2020 it can cope with lockdowns very well in 1H20, especially when it comes to cost management, leading to profits. Its big data-driven business model has led to marketing that reaches the target audience and able to create products to meet the needs of customers. Consequently, 3Q20 net profit has sharply recovered to +175.6% QoQ, a new record high. While momentum in 4Q20 continues well, driven by Shop Dee Me Kuen project.
Optimistically, COVID-19 accelerated JUBILE to drive its online store successfully, 5-7% increase in 3Q20. Given the government epidemic control guidelines that are not as harsh as in 2020, the share price weakness offers an opportunity to accumulate stock for investment. Thus, Maybank upgraded its rating from TRADING BUY to “BUY” and rolled-over its target price on JUBILE from THB18.20 to THB27.90 on a 4-year avg P/E of 17.8x.