The share price of SCG Packaging Public Company Limited (SCGP) rose ฿1.50/share or 3.39% to ฿45.75/share with a trading value of 2,656 million baht.
Maybank Kim Eng (Maybank) has given a “BUY” recommendation on SCGP with a target price of ฿48.00/share due to the positive view toward the recent acquisition of Go-Pak UK Limited (100%) and SOVI (94%), a Vietnamese leading fiber based packaging company, which will increase a sales volume and earnings of SCGP in 2021 by 5% and 8.1%, respectively.
Expecting 2020-2022 net profit to grow at the average of 20% CAGR. The acquisition of Go-Pak and SOVI will expand customer bases, especially foods, beverages and consumer goods, at the same time, Maybank to see more Mergers & Partnerships (M&P) from SCGP and production capacity.
Tisco Securities has also given a “BUY” rating on SCGP with an upgraded target price of ฿51.00/share as expects packaging product price to increase 3% in 2021 on higher demand in packaging and cardboard globally, while estimating the 2021-2022 earnings to grow 8% based on EV/EBITDA ratio at 12.5x.