Stocks in Focus on January 18, 2021: GLOBAL and MAKRO

Stocks in Focus on January 18, 2021: GLOBAL (KGI Securities TP at ฿20.70/share) and MAKRO (KGI Securities TP at ฿45.00/share).

Kaohoon Online has selected stocks with a potentially high growth for investors to consider on January 18, 2021.

 

KGI Securities has given an “Outperform” rating on Siam Global House Public Company Limited (GLOBAL) with a target price at ฿20.70/share.

KGI stated that the rising farm income coupled with GLOBAL’s store locations would support the company’s earnings as it enters the high season in 1Q21. In addition, continued store expansion and low base from temporary store closures in 2Q20 would support YoY growth in 2Q21-4Q21. Given the outstanding earnings growth at 29% YoY in 2021 and 16% upside to the target price.

KGI maintained a rating of Outperform with an end-2021 target price of Bt20.70 based on unchanged PER 34.0x (+0.5 S.D the average between GLOBAL and its peer Home Product Center (HMPRO).

 

KGI Securities has upgraded its rating on Siam Makro Public Company Limited (MAKRO) from “Neutral” to “Outperform” with a target price at ฿45.00/share.

KGI stated that a delay in 2021 tourist arrivals would lead to a slower pace of recovery in domestic consumption. However, MAKROs well-diversified client base, coupled with indirect benefit from government stimulus campaigns would partially mitigate the negative impact, resulting in better anticipated earnings growth than CPALL.

Thus, KGI assigned premium PER at 32.0x (+0.25 S.D.) from 31.0x, putting our end-2021 target price at Bt45.00.