Stocks in Focus on January 22, 2021: MAJOR and VL

Stocks in Focus on January 22, 2021: MAJOR (Krungsri Securities TP at ฿23.00/share) and VL (Maybank Kim Eng TP at ฿1.85/share).

Kaohoon Online has selected stocks with a potentially high growth for investors to consider on January 22, 2021.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Major Cineplex Group Public Company Limited (MAJOR) with a target price at ฿23.00/share.

KSS expected MAJOR to report Bt80m of net profit in 4Q20. Sentiment is bolstered by easier Covid restrictions in Bangkok while the anticipated blockbuster lineup will drive 2021 to deliver Bt845m of profit, compared to estimated Bt775m of loss in 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on V.L. Enterprise Public Company Limited (VL) with a target price at ฿1.85/share.

Maybank stated that VL was the second most underrated tanker in the country because of the small fleet size, no net expansion and flat 2019-20 earnings outlook. But from 2021-23, Maybank began to see a +26.5% CAGR profit growth from capacity to increase 45% by 3 years, also supported by high GPM from the previous smart fleet adjustments (Sell old small boats – buy big new boats).

The current share price has a 37% P/BV discount from the shipping sector, trading at only 1.1x P/BV despite having consistent profits in the secure ship segment with a very high barrier to entry, and profit is starting to grow and become very prominent in 2Q21.