Stocks in Focus on February 5, 2021: BBL and TKN

Stocks in Focus on February 5, 2021: BBL (Maybank Kim Eng TP at ฿150.00/share) and TKN (Kingsford Securities TP at ฿13.60/share).

Kaohoon Online has selected stocks with a potentially high growth for investors to consider on February 5, 2021.

 

Maybank Kim Eng has given a “BUY” recommendation on Bangkok Bank Public Company Limited (BBL) with a target price at ฿150.00/share.

Maybank stated that BBL has set a target for the year 2021 that is somewhat better than expected, such as provisions at THB22b, a decrease from THB31-32b in 2019-20, and the cost to income ratio decrease from 55.6% in 2020 to 50-52% in 2021. This is expected to be positive and increase the likelihood of the market raising its forecast.

 

Kingsford Securities has given a “BUY” recommendation on Taokaenoi Food & Marketing Public Company Limited (TKN) with a target price at ฿13.60/share.

Kingsford stated that TKN’s 4Q20 could weaken YoY due to lower freight container supply that impacted exports, while marketing expenses should rise due to the debut of new products, but the stock should have bottomed out.

Meanwhile, TKN’s executives projected revenues in 2021 to recover to 5-5.2 billion baht, an increase by 27% YoY, mainly due to the new products, especially the Taiwan milk tea “Just Drink” that would introduce additional 2-3 flavours, and the plant-based snack. The production costs and SG&A should decrease this year to support TKN’s profit margin.