GFPT Rebounds 1.6% after RSI Indicates “Oversold”, Maybank Recomm. “Hold” at a TP of Bt13

The share price of GFPT Public Company Limited (GFPT) rose ฿0.20/share or 1.63% to close the morning session at ฿12.50/share with a trading value of 19.2 million baht.

 

GFPT’s share saw an uptick in today’s trading session after a 4-day losing streak for a total of 5.7%. As of last Friday, the relative strength index (RSI) indicated an oversold on GFPT at 26.59%.

 

Maybank Kim Eng has given a “HOLD” recommendation on GFPT at a target price at ฿13.00/share, seeing weakening profit in 1Q21.

Maybank expected healthy 4Q20 profit to be boosted by insurance compensation. However, 1Q21 earnings may be affected by higher feed raw material costs, weak exports due to lower consumption in Japan and shipping problems to Europe. In addition, GFPT is still installing the three cooked chicken production lines that will complete in mid-2021. Although Maybank expected earnings to recover from 2Q21 on a low base, 2021s profit will grow only 4%. Reiterate HOLD, with a TP of THB13 pegged to 13x PE, its 5-year average PER to factor the moderate growth.