Stocks in Focus on February 9, 2021: JMT and TSTH

Stocks in Focus on February 9, 2021: JMT (KGI Securities TP at ฿47.50/share) and TSTH (Maybank Kim Eng TP at ฿0.75/share).

Kaohoon Online has selected stocks with a potentially high growth for investors to consider on February 9, 2021.

 

KGI Securities has given an “Outperform” rating on JMT Network Services Public Company Limited (JMT) with a target price of ฿47.50/share.

Based on JMTs anticipated 4Q20 earnings, and asset purchases in 2020 and 2021, KGI revised up 2020 and 2021 earnings forecasts by 18% and 16%, respectively, and raised the 2021 target price to Bt47.50, from Bt40.00, based on PE 35x.

After revision, KGI assumed 2-year net profit to grow 58% and 36%, mainly driven by margin improving 7ppts and 5ppts, respectively.

 

Maybank Kim Eng has given a “T-BUY” recommendation on Tata Steel (Thailand) Public Company Limited (TSTH) with a target price at ฿0.75/share.

Maybank stated that a sharp rise in rebar prices in Jan-Feb will significantly boost 4Q20/21 profit to THB300-400m. The situation of the steel industry improved after a great decline in Chinese steel hitting the market. This should lead to better operating results.

Maybank’s target price is based on a 10-year average, Forward P / BV – 1SD = 0.65x, deriving a new target price of THB0.75, up from THB0.55 (based on P / BV – 2SD = 0.55x). The security company upgraded its rating to TRADING BUY short-term (previously SOLD), as the steel industry remains volatile with high risk.