Stocks in Focus on February 11, 2021: OR and DCC

Stocks in Focus on February 11, 2021: OR (Krungsri Securities TP at ฿25.00/share) and DCC (Maybank Kim Eng TP at ฿3.18/share).

Kaohoon Online has selected stocks with a potentially high growth for investors to consider on February 11, 2021.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on PTT Oil and Retail Business Public Company Limited (OR) at a target price of ฿25.00/share.

KSS expected OR’s non-oil business (convenient stores and Cafe Amazon) to outperform with an average EBITDA at 25-27%, compared to its oil business at 2-3%. KSS estimated OR’s EBITDA of the non-oil business to grow 30% in 2020, and will increase to 40% in the next four years.

 

Maybank Kim Eng has given a “BUY” recommendation on Dynasty Ceramic Public Company Limited (DCC) at a target price of ฿3.18/share.

DCC reported 4Q20 net profit of THB362m, slightly higher than Maybank’s forecast of THB350m. Earnings fell 12% QoQ, but continued growing 52% YoY. Although the 4Q20 sales slowed to THB1.885b (-9% QoQ, -1% YoY) due to the heavy rainfall during Oct-Nov, however, gross margins remained healthy at 41.8% vs 43% in 3Q20 and 37.1% in 2019 due to lower gas costs YoY and the release of big sized tiles with a good margin. SG&A expenses fell to THB358m (-9% QoQ, -11% YoY) from lower transportation costs as it switched to B10 fuel. For full-year 2020, profit hit THB1.585b, jumping 63%, setting a new record high.