SCGP Gains 3% as Paper-Packaging Prices Continue to Rise, Analyst Recomm. “BUY” at Bt55

The share price of SCG Packaging Public Company Limited (SCGP) rose ฿1.50/share or 3.12% to ฿49.50/share as of 12:16 local time on Tuesday with a trading value of 988 million baht.

Maybank Kim Eng has given a “BUY” recommendation on SCGP with a target price at ฿55.00/share, stating that prices of paper packaging in ASEAN continued rising to USD500/t, the highest in 2 years. At the same time, paper scrap cost rises slower than paper prices, resulting in spreads increasing to USD300/t. This should help drive 1Q21 earnings to strongly grow.