Stocks in Focus on February 17, 2021: RATCH and MAJOR

Stocks in Focus on February 17, 2021: RATCH (KTB Securities TP at ฿52.50/share) and MAJOR (Krungsri Securities TP at ฿23.00/share).

Kaohoon Online has selected stocks with a potentially high growth for investors to consider on February 17, 2021.

 

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on Ratch Group Public Company Limited (RATCH) with a target price at ฿52.50/share.

KTBST stated that RATCH’s 4Q earnings significantly exceeded the Bloomberg consensus forecast by 70%, while maintaining core profit growth forecast at +7%/+3%, as the new power plant projects with a combined capacity of 713 MW are set to begin COD during the years.

In addition, KTBST stated that RATCHs share price underperformed the SET Index by 18% in 12 months. The stock’s valuation looks attractive, trading at 11x PER, which is -1 SD (the lowest band in four years) and well below its peers average level of 25x. KTBST believed the current level has yet priced in its long-term growth, while dividend yield is estimated to be more than 5%.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Major Cineplex Public Company Limited (MAJOR) with a target price at ฿23.00/share.

KSS stated that MAJOR’s 4Q earnings beat expectations. The latest outbreak which started last December is threatening to derail the anticipated strong recovery in 2021. However, KSS maintained Bt845m profit forecast for FY21F, turning around from Bt527m loss in FY20. The security expected stellar earnings in 2Q21 supported by a strong movie lineup, especially Hollywood movies.